Section 8 Fair Market Rent (FMR) for ZIP 78701 - 2027

Location: Austin-Round Rock-San Marcos, TX | Metro: Austin-Round Rock-San Marcos, TX MSA

Investment Score for ZIP 78701

Monthly Rent (2BR)

$2,730

Median Price (2BR)

$804,939

1% Rule

0.34%

Annual Yield

4.07%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$2,170
1 Bedroom	$2,300
2 Bedrooms	$2,730
3 Bedrooms	$3,440
4 Bedrooms	$4,040
5 Bedrooms	$4,686
6 Bedrooms	$5,248
7 Bedrooms	$5,668
8 Bedrooms	$5,951

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$2,300	$459,098	0.5%	F
2BR	$2,730	$804,939	0.34%	F
3BR	$3,440	$1,978,261	0.17%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

11,824

Median Household Income

$162,168

Housing Units

8,763

Renter Percentage

54.7%

Occupancy Rate

90.7%

Renter Occupied

4,348

Austin's ZIP code 78701, located in the heart of the city, is a vibrant area known for its proximity to downtown attractions, universities, and tech companies. This central location makes it highly desirable for both residents and investors alike, offering a mix of urban living and access to amenities that cater to a diverse population.

The Fair Market Rent (FMR) for ZIP 78701 is set at $2,890 for fiscal year 2024, indicating the government's benchmark for rental affordability in the area.
The actual market rent, measured by Zillow's ZORI index, stands at $2,998, slightly above the FMR, reflecting the competitive nature of the housing market in this part of Austin.
The median home value in ZIP 78701 is $672,402, suggesting that homeownership is a significant investment in this area, with properties commanding high prices due to their prime location.
Renters make up 54.7% of the population in ZIP 78701, highlighting a strong demand for rental properties among the young professionals and students who populate the area.
The median household income in this ZIP code is $162,168, which is notably higher than the national average, indicating a robust economic base capable of supporting high rental rates and property values.

Investors looking to enter the ZIP 78701 market should be prepared for a competitive landscape where rental properties can command premiums close to the ZORI index. The high median income supports these elevated rates, while the substantial renter share ensures steady demand. Given the area's attractiveness and the relatively minor difference between FMR and ZORI, there is potential for modest profit margins through rental properties, though homeownership remains a significant investment opportunity with the median home value reflecting the desirability of the location.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.