Section 8 Fair Market Rent (FMR) for ZIP 78730 - 2027

Location: Austin-Round Rock-San Marcos, TX | Metro: Austin-Round Rock-San Marcos, TX MSA

Investment Score for ZIP 78730

Monthly Rent (2BR)

$1,900

Median Price (2BR)

$283,864

1% Rule

0.67%

Annual Yield

8.03%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,510
1 Bedroom	$1,600
2 Bedrooms	$1,900
3 Bedrooms	$2,400
4 Bedrooms	$2,810
5 Bedrooms	$3,260
6 Bedrooms	$3,651
7 Bedrooms	$3,943
8 Bedrooms	$4,140

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,600	$200,900	0.8%	D
2BR	$1,900	$283,864	0.67%	D
3BR	$2,400	$996,108	0.24%	F
4BR	$2,810	$1,303,388	0.22%	F
5BR	$3,260	$1,782,787	0.18%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

9,142

Median Household Income

$158,673

Housing Units

4,349

Renter Percentage

34.1%

Occupancy Rate

94.0%

Renter Occupied

1,393

If a landlord is considering purchasing a property in ZIP code 78730 (Austin, TX) for Section 8 investment, they must evaluate several key factors:

1) Does the Fair Market Rent (FMR) of $1970 cover the debt service on a $1,120,416 property?

No. The FMR of $1970 would not be sufficient to cover the debt service on a property valued at $1,120,416. Debt service typically includes mortgage payments, which can be estimated using a standard amortization schedule. For a property of this value, even with a low interest rate, monthly mortgage payments would likely exceed the FMR significantly.

2) Is the market rent of $1,385 (ZORI) above, at, or below the FMR?

The ZORI of $1,385 is below the FMR of $1970. This suggests that the market rent is lower than what tenants could potentially pay under the Section 8 program, indicating a favorable position for landlords who can secure Section 8 tenants.

3) Are there enough renters and days on the market (DOM) to meet demand?

It depends. With 34.1% of residents being renters, the rental demand appears to be substantial. However, the lack of data regarding the days on the market (DOM) makes it difficult to assess how quickly properties are rented out. A high DOM could indicate slower turnover rates, which might affect cash flow negatively.

In summary, for a property valued at $1,120,416 in ZIP 78730, the FMR does not sufficiently cover the debt service. However, if the landlord can secure Section 8 tenants, they will benefit from higher rents compared to the ZORI. The substantial percentage of renters suggests strong demand, but without DOM data, it's unclear how quickly units can be filled.

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.