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 | $1,340 |
| 1 Bedroom | $1,410 |
| 2 Bedrooms | $1,680 |
| 3 Bedrooms | $2,120 |
| 4 Bedrooms | $2,490 |
| 5 Bedrooms | $2,888 |
| 6 Bedrooms | $3,235 |
| 7 Bedrooms | $3,494 |
| 8 Bedrooms | $3,669 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,680 | $259,818 | 0.65% | D |
| 3BR | $2,120 | $311,956 | 0.68% | D |
| 4BR | $2,490 | $351,502 | 0.71% | D |
U.S. Census Bureau data (2024)
The ZIP code 78724 in Austin, TX, presents a complex landscape for both renters and landlords. The median income for a household in this area is $77,926, which must cover the market rate rent of $1,607 per month (ZORI). This amount represents approximately 25% of the annual median income, indicating that while it is manageable, it leaves little room for other expenses such as utilities, food, and healthcare.
In comparison, the Fair Market Rent (FMR) for the zip code in fiscal year 2024 is set at $1,880, which is slightly higher than the market rate but within a reasonable range. For those receiving housing vouchers, this means they have some flexibility to negotiate rents up to the FMR limit, potentially offering landlords a more stable income source.
Given that 39.4% of the 31,103 residents are renters, there is a significant demand for rental properties. However, the affordability gap between the median income and the market rate rent suggests that many households may struggle to pay the full market price without assistance. This creates a competitive environment for landlords, as they may need to consider offering more affordable options or accepting voucher payments to attract tenants.
The takeaway for landlords considering their strategy in ZIP 78724 is clear: accepting Section 8 vouchers can be a viable option to ensure steady occupancy. While voucher payments might be lower than market rates, the stability they offer can outweigh the risks associated with finding cash-paying tenants who can afford the full rent. Landlords should also be aware of the potential benefits of participating in the voucher program, including federal subsidies that can help bridge the affordability gap for tenants and provide a consistent revenue stream 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.