Location: Austin-Round Rock-San Marcos, TX | Metro: Austin-Round Rock-San Marcos, TX MSA
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,680 |
| 1 Bedroom | $1,780 |
| 2 Bedrooms | $2,110 |
| 3 Bedrooms | $2,660 |
| 4 Bedrooms | $3,120 |
| 5 Bedrooms | $3,619 |
| 6 Bedrooms | $4,053 |
| 7 Bedrooms | $4,377 |
| 8 Bedrooms | $4,596 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,110 | $334,934 | 0.63% | D |
| 3BR | $2,660 | $341,201 | 0.78% | D |
| 4BR | $3,120 | $426,758 | 0.73% | D |
| 5BR | $3,619 | $540,237 | 0.67% | D |
U.S. Census Bureau data (2024)
Round Rock’s 78665 ZIP code represents the northern frontier of Austin’s explosive suburban expansion, characterized by master-planned communities and a robust family-oriented atmosphere. This area is dominated by the presence of Texas State University’s Round Rock Campus and major employers like Dell Technologies, which serve as economic anchors for the region. The neighborhood offers a classic Texas suburban feel with mature trees, golf course amenities, and a highly involved community, making it a desirable "soft landing" for residents relocating from denser urban cores.
Financially, the market presents a compelling spread for program participants. The FY2026 Fair Market Rate for a 2-bedroom unit is set at $2,120, yet the prevailing market rent (Zillow ZORI) sits significantly lower at $1,524. This creates a substantial gap of $596 per month, meaning voucher holders often pay above market rate to secure housing. Assets in this ZIP carry a median value of $399,866 and take a median of 99 days to sell, indicating a relatively liquid but somewhat slower-moving investment market compared to the frenetic pace of central Austin.
With a renter share of 38.6% and a median household income of $122,680, the local tenant base is generally stable and employed, yet the high cost of homeownership sustains strong rental demand. Families are drawn to the area’s top-rated school districts and the perceived safety of the suburbs, which reduces turnover volatility. While transit options are more car-dependent than the city center, the proximity to major employers ensures a consistent pool of qualified renters who may require housing assistance despite the area’s affluence.
The Section 8 verdict for 78665 is heavily weighted toward stability and risk mitigation. The significant gap between the $2,120 FMR and the $1,524 market rent allows landlords to maximize guaranteed payments without pricing out the local demographic. While the 99-day days-on-market suggests appreciation may be moderate, the reliable cash flow from the payment standard creates a defensive investment hedge in a high-growth corridor.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.