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 | $1,580 |
| 1 Bedroom | $1,670 |
| 2 Bedrooms | $1,980 |
| 3 Bedrooms | $2,500 |
| 4 Bedrooms | $2,930 |
| 5 Bedrooms | $3,399 |
| 6 Bedrooms | $3,807 |
| 7 Bedrooms | $4,112 |
| 8 Bedrooms | $4,318 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,980 | $313,789 | 0.63% | D |
| 3BR | $2,500 | $444,257 | 0.56% | F |
| 4BR | $2,930 | $592,858 | 0.49% | F |
| 5BR | $3,399 | $784,539 | 0.43% | F |
U.S. Census Bureau data (2024)
ZIP code 78717, located in Austin, TX, is situated within the Austin-Round Rock-San Marcos, TX Metropolitan Statistical Area (MSA). Its Fair Market Rent (FMR) for fiscal year 2024 is set at $2000, which is higher than the market rent of $1,515. This indicates that while there is a government-set minimum for rental properties, the actual market rents are lower, suggesting a potential opportunity for landlords who can offer competitive pricing without falling below the FMR.
The median home value in ZIP 78717 is $570,141, which aligns with the higher end of the housing market in the Austin area. However, the renter share is notably high at 48.7%, indicating a significant portion of residents prefer renting over owning. This high renter share coupled with below-metro average home values could signal a sweet spot for Section 8 tenants, as it suggests a concentration of renters in an area where homeownership is relatively expensive.
To determine whether ZIP 78717 is a value pocket, a mid-tier neighborhood, or a premium sub-market within the Austin-Round Rock-San Marcos, TX MSA, we must consider the interplay between its FMR, market rent, home values, and renter share. The FMR being above the market rent points towards a premium sub-market, where landlords can potentially charge closer to the FMR due to the higher cost of living and desirability of the area. However, the high renter share and relatively high home values suggest that it might also be a mid-tier neighborhood where affordability is a concern for potential homeowners, pushing more individuals towards rentals.
The divergence between the high renter share and the median home values in ZIP 78717 makes it a particularly interesting area for landlords and small-portfolio investors looking to capitalize on the demand for rental properties. This combination can create a scenario where the area is attractive to Section 8 tenants seeking affordable housing options, thus offering a steady and reliable tenant base for property owners.
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.