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 | $1,390 |
| 1 Bedroom | $1,470 |
| 2 Bedrooms | $1,740 |
| 3 Bedrooms | $2,190 |
| 4 Bedrooms | $2,580 |
| 5 Bedrooms | $2,993 |
| 6 Bedrooms | $3,352 |
| 7 Bedrooms | $3,620 |
| 8 Bedrooms | $3,801 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,740 | $401,563 | 0.43% | F |
| 3BR | $2,190 | $518,665 | 0.42% | F |
| 4BR | $2,580 | $601,312 | 0.43% | F |
| 5BR | $2,993 | $660,191 | 0.45% | F |
U.S. Census Bureau data (2024)
1760 is the Fair Market Rent (FMR) for ZIP code 78723 in Austin, TX, for fiscal year 2024. This figure is crucial for landlords participating in the Section 8 program, as it dictates the maximum allowable rental amount for subsidized housing units. Meanwhile, the market rent, measured by ZORI, stands at 1843, indicating that properties in this area are slightly above the government-set threshold, which could be advantageous for landlords looking to maximize their income. The median home value in ZIP 78723 is 484492, reflecting a robust real estate market where homes are generally priced higher than the average across the country. With a 51.4% share of renters, the area has a significant portion of the population relying on rental housing, suggesting a steady demand for apartments and houses available for lease. The median income of 100329 provides insight into the financial capabilities of potential tenants, ensuring they can afford the market rates. Although the days on market (DOM) data is not available, the low 0.3% price-cut share indicates that homes in this area sell quickly once listed, without the need for significant price reductions. Given these factors, landlords and small-portfolio investors should find ZIP 78723 a profitable location, with a strong rental market and a fair balance between market rents and Section 8 limits.
Based on the provided data, the verdict for Section 8 participation in ZIP 78723 is positive. The FMR aligns closely with the market rent, ensuring landlords receive competitive compensation while still providing affordable housing options.
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.