Section 8 Fair Market Rent (FMR) for ZIP 78691 - 2027

FY 2027 Fair Market Rent Rates

The ZIP code 78691 in Pflugerville, TX, presents several key considerations for landlords and small-portfolio investors interested in Section 8 housing. Let's address the common objections that skeptical investors might raise.

• Will FMR $1950 (zip FY 2024) cover the mortgage on a home?: The Fair Market Rent (FMR) of $1950 is the maximum amount that a landlord can charge for a Section 8 rental unit in ZIP 78691. However, without specific data on median home values or typical mortgage payments in this ZIP code, it's challenging to definitively state whether this FMR will cover the mortgage. Generally, it depends on the size and condition of the property. For instance, if a property is valued below the average for the area, the FMR may suffice. Conversely, higher-valued homes could require additional income sources to cover the mortgage.
• Is there enough renter demand at the given percentage?: The data does not provide a specific percentage of renters in ZIP 78691. However, Pflugerville is part of the growing Austin-Round Rock metro area, which suggests a strong potential for renter demand. The lack of detailed housing occupancy data makes it difficult to quantify this demand accurately. Nonetheless, the presence of 27 businesses indicates a local economy that supports employment, likely contributing to a steady pool of tenants.
• Will vouchers keep pace with market rents?: The FMR of $1950 is set by HUD to reflect the average market rent for a moderate-quality rental unit. While this figure aims to match the prevailing market conditions, it does not guarantee that voucher amounts will exactly align with every property's rent. In areas experiencing rapid growth, such as the Austin metropolitan region, market rents can rise faster than the FMR adjustments. Therefore, it's crucial to monitor local rental trends and adjust expectations accordingly.

Note that the specific percentages and median home values are not provided in the data, which limits a comprehensive analysis. However, the outlined points should give a foundational understanding of the challenges and opportunities in ZIP 78691.

Data Sources: FMR data from HUD (2027).

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.