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 | $1,940 |
| 1 Bedroom | $2,050 |
| 2 Bedrooms | $2,440 |
| 3 Bedrooms | $3,080 |
| 4 Bedrooms | $3,610 |
| 5 Bedrooms | $4,188 |
| 6 Bedrooms | $4,691 |
| 7 Bedrooms | $5,066 |
| 8 Bedrooms | $5,319 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,050 | $369,232 | 0.56% | F |
| 2BR | $2,440 | $728,305 | 0.34% | F |
| 3BR | $3,080 | $1,307,192 | 0.24% | F |
| 4BR | $3,610 | $2,053,324 | 0.18% | F |
| 5BR | $4,188 | $2,892,558 | 0.14% | F |
U.S. Census Bureau data (2024)
The ZIP code 78703 in Austin, TX, stands out within Travis County due to its unique demographic and economic characteristics. With a population of 23,483 residents, it has a significant rental market, with 46.5% of its inhabitants renting their homes. The median income in this area is $153,036, which is notably higher than the national average, indicating a prosperous community. However, the median home value is exceptionally high at $1,297,212, reflecting the premium real estate market in this part of Austin.
In terms of voucher economics, the Fair Market Rent (FMR) for ZIP 78703 in fiscal year 2024 is set at $2,200. This figure is lower than the market rent, measured by ZORI (Zillow Observed Rent Index), which is $2,569. This discrepancy suggests that landlords participating in the Section 8 program may receive slightly less rent compared to the market rate, but still benefit from a stable tenant base and government-backed payments.
The data signature for ZIP 78703 reads as stable. Despite the high median home values, the rental market remains robust, catering to a substantial portion of the population. The relatively high median income supports a healthy economy, making it an attractive location for both renters and homeowners. For landlords and small-portfolio investors, the stability and prosperity of the area offer a secure investment environment, even if there is a slight difference between market rents and FMRs.
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.