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 | $1,470 |
| 1 Bedroom | $1,550 |
| 2 Bedrooms | $1,840 |
| 3 Bedrooms | $2,320 |
| 4 Bedrooms | $2,720 |
| 5 Bedrooms | $3,155 |
| 6 Bedrooms | $3,534 |
| 7 Bedrooms | $3,817 |
| 8 Bedrooms | $4,008 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,320 | $547,671 | 0.42% | F |
| 4BR | $2,720 | $701,174 | 0.39% | F |
| 5BR | $3,155 | $818,354 | 0.39% | F |
U.S. Census Bureau data (2024)
ZIP 78726, located within the Austin-Round Rock-San Marcos, TX MSA, serves as a strong cash-flow anchor for any Section 8 portfolio strategy. The Federal Market Rent (FMR) for ZIP 78726 in fiscal year 2024 is set at $1980, which is significantly higher than the current market rent of $1352. This $628 spread per unit directly translates into increased cash flow for landlords participating in the Section 8 program.
The median home value in ZIP 78726 is $708,500, indicating a relatively affluent neighborhood where property values are likely to remain stable or appreciate gradually over time. This stability ensures that landlords can rely on consistent rental income without the risk of rapid depreciation in asset value.
Moreover, the low 0.2% price-cut share suggests that there is minimal competition forcing landlords to reduce their rents, maintaining the profitability of their units. While the N/A-day DOM (Days on Market) indicates that properties in this area are typically rented quickly, this does not necessarily impact the cash flow advantage derived from the Section 8 program.
The 60.1% renter share and median income of $90,885 further support the cash-flow anchor strategy. With a high percentage of renters and a substantial median income, there is a robust demand for affordable housing options within the ZIP code, ensuring steady occupancy rates and minimizing vacancy risks. This combination of factors makes ZIP 78726 an ideal location for landlords seeking to generate reliable cash flows through the Section 8 program.
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.