Location: Austin-Round Rock-San Marcos, TX | Metro: Austin-Round Rock-San Marcos, TX MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,380 |
| 1 Bedroom | $1,460 |
| 2 Bedrooms | $1,730 |
| 3 Bedrooms | $2,180 |
| 4 Bedrooms | $2,560 |
| 5 Bedrooms | $2,970 |
| 6 Bedrooms | $3,326 |
| 7 Bedrooms | $3,592 |
| 8 Bedrooms | $3,772 |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP 78719 operate under specific guidelines that landlords should understand to manage their expectations regarding rental income. For a two-bedroom apartment, the SAFMR (Small Area Fair Market Rent) is set at $1470 per month for fiscal year 2024. This figure is specific to this ZIP code, meaning it reflects the local rental market conditions.
In comparison, the local market rent for a two-bedroom unit, based on Census ACS data, stands at $1,656. This indicates that landlords could potentially receive a higher rent if they were to lease without a Section 8 voucher. However, the SAFMR serves as the ceiling for what the Housing Choice Voucher Program will reimburse.
A landlord who accepts a Section 8 voucher must be aware of the components that make up the total payment. The voucher program reimburses the landlord for the difference between the tenant's portion of the rent and the SAFMR. The tenant is typically responsible for paying 30% of their adjusted monthly income towards rent and utilities. If we assume an average adjusted monthly income of $1,000 for a tenant in ZIP 78719, the tenant would pay approximately $300 toward the rent and utilities.
The SAFMR of $1470 includes a standard utility allowance. For ZIP 78719, the utility allowance is not explicitly stated but can vary. Assuming a utility allowance of $100, the government would cover the remaining $1,070 ($1470 - $300 tenant contribution - $100 utility allowance).
This means the landlord receives a total of $1,370 ($300 from the tenant + $1070 from the government) if the utility allowance is $100. However, since the local market rent is $1,656, the landlord faces a shortfall of $286 per month ($1,656 - $1,370).
To summarize, landlords in ZIP 78719 who accept Section 8 vouchers will receive a total of $1,370 for a two-bedroom apartment, given the assumptions above. This results in a gap of $286 compared to the local market rent of $1,656. Landlords should consider this gap when deciding whether to participate in the Section 8 program, weighing it against the benefits such as guaranteed payments and reduced vacancy rates.
Data Sources: FMR data from HUD (2027). 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.