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 | $1,750 |
| 3 Bedrooms | $2,210 |
| 4 Bedrooms | $2,590 |
| 5 Bedrooms | $3,004 |
| 6 Bedrooms | $3,364 |
| 7 Bedrooms | $3,633 |
| 8 Bedrooms | $3,815 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,750 | $295,289 | 0.59% | F |
| 3BR | $2,210 | $384,988 | 0.57% | F |
| 4BR | $2,590 | $442,357 | 0.59% | F |
U.S. Census Bureau data (2024)
Austin's ZIP code 78728 presents an intriguing balance between yield and stability, making it a noteworthy area for real-estate investment analysis. The Federal Market Rent (FMR) for the fiscal year 2024 is set at $1,770, which is notably higher than the market rent of $1,305. This discrepancy suggests a potential opportunity for landlords to achieve above-average rental yields, assuming they can secure tenants willing to pay closer to the FMR rate.
The median home value in ZIP 78728 stands at $407,937. When considering the rental income potential against this figure, the area leans towards a high-yield market. However, the stability factor must also be evaluated. With 70.9% of residents being renters, there is a strong demand for rental properties, which supports a stable cash flow. The average household income of $75,243 indicates that the majority of residents have the financial capability to sustain rental payments, further bolstering the stability of the rental market.
The lack of available data on the number of days on market (DOM) for rentals does introduce some uncertainty regarding how quickly properties can be leased. However, given the high percentage of renters and the reasonable income levels, it is likely that the market remains relatively stable despite this gap in information. Therefore, ZIP 78728 can be classified as a steady-cashflow zone with the potential for above-market yields, provided that landlords can navigate the pricing expectations effectively.
To summarize, the combination of a strong rental demand, reasonable household incomes, and the possibility of achieving rents near the FMR rate of $1,770, positions ZIP 78728 as a market that offers both stability and yield. Landlords and small-portfolio investors should focus on understanding local rental trends and pricing strategies to maximize their returns while maintaining a stable occupancy rate.
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.