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 | $1,580 |
| 1 Bedroom | $1,680 |
| 2 Bedrooms | $1,990 |
| 3 Bedrooms | $2,510 |
| 4 Bedrooms | $2,950 |
| 5 Bedrooms | $3,422 |
| 6 Bedrooms | $3,833 |
| 7 Bedrooms | $4,140 |
| 8 Bedrooms | $4,347 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,510 | $614,048 | 0.41% | F |
| 4BR | $2,950 | $796,757 | 0.37% | F |
| 5BR | $3,422 | $1,120,053 | 0.31% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 78732 within the Austin-Round Rock-San Marcos, TX MSA reveals several key insights for landlords and small-portfolio investors.
Firstly, regarding the rent math, the Fair Market Rent (FMR) for ZIP 78732 in fiscal year 2024 is set at $2270. However, the current market rent, as indicated by ZORI (Zillow Observed Rental Index), stands at $1954. This discrepancy means that landlords aiming to align with FMR might struggle to find tenants willing to pay the higher rate, thus making the rent math less favorable unless market conditions change significantly.
Secondly, the acquisition cost of properties must be considered. The median home value in ZIP 78732 is $816,658, which is quite high. With no average days on the market (DOM) data available and only a 0.2% share of homes experiencing price cuts, it suggests that the housing market is relatively stable but not particularly affordable for acquisition. Landlords should expect to pay close to the median value when purchasing properties in this area.
Lastly, tenant demand is an essential factor. ZIP 78732 has a population of 21,087, with 27.1% being renters. This indicates a moderate level of demand for rental properties, although the percentage of renters is not exceptionally high. Landlords can expect a steady but not overwhelming stream of potential tenants.
In conclusion, while ZIP 78732 presents opportunities for landlords and small-portfolio investors due to the presence of a significant number of renters, the high median home value and the mismatch between FMR and actual market rents present challenges. Investors must carefully consider their pricing strategies and be prepared for potentially higher acquisition costs. Despite these factors, the stability of the housing market and the consistent demand for rentals make this ZIP code a viable option for those willing to navigate its complexities.
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.