Section 8 Fair Market Rent (FMR) for ZIP 78714 - 2027

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

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,470
1 Bedroom	$1,560
2 Bedrooms	$1,850
3 Bedrooms	$2,330
4 Bedrooms	$2,740
5 Bedrooms	$3,178
6 Bedrooms	$3,559
7 Bedrooms	$3,844
8 Bedrooms	$4,036

To understand how Section 8 economics work in ZIP code 78714, which is part of the Austin-Round Rock-San Marcos County area in Texas, it's important to focus on the Specific Area Fair Market Rent (SAFMR) for a two-bedroom apartment, which is set at $1950 for fiscal year 2024. This SAFMR is specifically tailored for this ZIP code, reflecting local rental market conditions.

The SAFMR represents the maximum amount that the housing authority will pay for a unit of a certain size. However, the actual reimbursement to landlords depends on several factors including the tenant's contribution and any utility allowances. Here’s a step-by-step breakdown:

Tenant Contribution: Tenants typically pay 30% of their adjusted income toward rent. If we assume an average adjusted income of $1500 (for illustrative purposes), the tenant would contribute $450 toward rent.
Utility Allowance: Utility allowances vary but are generally around $150-$200 per month. For this analysis, let’s use a conservative estimate of $150.
Total Payment: The total payment received by the landlord would be the sum of the tenant's contribution and the utility allowance, plus the remainder paid by the housing authority up to the SAFMR limit. In this case, if the housing authority pays the difference between the SAFMR and the tenant's contribution, the landlord would receive $1500 ($1950 - $450) plus the utility allowance of $150, totaling $1650.

This means that even though the SAFMR is $1950, the landlord might only receive $1650 due to the tenant's contribution and the utility allowance. Therefore, there is a potential reimbursement gap of $300 per month for a two-bedroom unit in ZIP 78714, assuming the market rent is higher than the SAFMR. Conversely, if the market rent is lower than the SAFMR, landlords could see a surplus.

Given the SAFMR is set at $1950 for this specific ZIP code, landlords should consider this when evaluating the financial implications of accepting a Section 8 voucher. The reimbursement gap or surplus directly impacts the net income landlords can expect from renting out a two-bedroom unit under the Section 8 program.

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.