Location: Burnet County, 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 | $1,630 |
| 1 Bedroom | $1,720 |
| 2 Bedrooms | $2,070 |
| 3 Bedrooms | $2,640 |
| 4 Bedrooms | $3,000 |
| 5 Bedrooms | $3,480 |
| 6 Bedrooms | $3,898 |
| 7 Bedrooms | $4,210 |
| 8 Bedrooms | $4,421 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,070 | $440,894 | 0.47% | F |
| 3BR | $2,640 | $609,227 | 0.43% | F |
| 4BR | $3,000 | $840,777 | 0.36% | F |
| 5BR | $3,480 | $1,185,278 | 0.29% | F |
U.S. Census Bureau data (2024)
The ZIP code 78669, located in Spicewood, TX, presents an interesting scenario for both renters and landlords. The median household income in this area stands at $128,000, which is notably higher than the national average. However, when considering the market rate for rent, which is set at $2,946 per month (ZORI), it becomes evident that this represents a significant financial commitment for residents.
To put this into perspective, a household earning the median income would spend approximately 35% of their monthly income on rent alone if they were to pay the market rate. This is higher than the commonly recommended threshold of 30%, indicating that rent could be a substantial burden for many families in the area.
Comparatively, the Housing Choice Voucher program (commonly known as Section 8) offers a much more affordable option for renters. The Fair Market Rent (FMR) for ZIP 78669 in fiscal year 2024 is set at $1,530. This means that a household receiving a voucher would only need to contribute 30% of their income toward rent, significantly reducing the financial strain.
Given that only 7.9% of the population in Spicewood are renters, and the total population is 12,592, the number of potential renters is relatively small. This implies that landlords might face intense competition for tenants willing and able to pay the market rate. The affordability gap between the ZORI and the FMR highlights a significant difference in what renters can realistically afford versus what the market demands.
For landlords considering their rental strategies, the data suggests that focusing on accepting Section 8 vouchers could be a viable approach. While the monthly payment is lower at $1,530, the guaranteed rent and support from the voucher program can provide stability and reduce vacancy rates. In contrast, pursuing cash-paying tenants at the market rate might yield higher immediate returns but comes with greater risks due to the limited pool of potential renters who can afford such rates.
The takeaway for landlords is that while there is a segment of the population capable of paying market rates, the majority of renters in Spicewood might find these rates unaffordable. Accepting Section 8 vouchers can help tap into a different segment of the rental market, ensuring steady occupancy and potentially offering a more reliable revenue stream in the long term.
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.