Location: Austin-Round Rock-San Marcos, TX | Metro: Austin-Round Rock-San Marcos, TX MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,330 |
| 1 Bedroom | $1,410 |
| 2 Bedrooms | $1,670 |
| 3 Bedrooms | $2,120 |
| 4 Bedrooms | $2,490 |
| 5 Bedrooms | $2,888 |
| 6 Bedrooms | $3,235 |
| 7 Bedrooms | $3,494 |
| 8 Bedrooms | $3,669 |
U.S. Census Bureau data (2024)
The Section 8 analysis for ZIP code 78661 reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for ZIP 78661 in fiscal year 2024 is set at $1520, while the market rent remains unreported due to limited data availability. This gap highlights the potential challenges and opportunities for landlords and small-portfolio investors.
Given that the FMR is higher than the typical market rent, landlords should recognize that voucher tenants represent a yield play. The FMR compensates for the lack of market data, ensuring that landlords receive a fixed amount that is above the local average. This can be particularly beneficial in a market where the median home value stands at $211,040 and the median income is $82,896, indicating a relatively affordable area with moderate income levels.
With only 8.6% of residents being renters, the rental market in 78661 is smaller compared to other areas. However, the presence of Section 8 vouchers can still provide a steady stream of income. Landlords should be aware that while voucher tenants offer guaranteed payments, the administrative burden and potential maintenance issues associated with subsidized housing must also be considered.
To capitalize on the FMR, landlords should ensure their properties meet the necessary standards for voucher eligibility. This includes maintaining a livable environment and adhering to HUD regulations. By doing so, they can attract tenants who benefit from the government subsidy, thereby securing a stable tenant base and predictable rental income.
In conclusion, the gap between the FMR and the unreported market rent makes voucher tenants a viable option for landlords in ZIP 78661. The FMR provides a reliable income source, especially in a market with limited rental activity. This yield play can be advantageous when managed effectively, considering the broader economic context of the area.
Data Sources: FMR data from HUD (2027). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.