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 | $1,680 |
| 1 Bedroom | $1,780 |
| 2 Bedrooms | $2,110 |
| 3 Bedrooms | $2,660 |
| 4 Bedrooms | $3,120 |
| 5 Bedrooms | $3,619 |
| 6 Bedrooms | $4,053 |
| 7 Bedrooms | $4,377 |
| 8 Bedrooms | $4,596 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,110 | $402,898 | 0.52% | F |
| 3BR | $2,660 | $538,609 | 0.49% | F |
| 4BR | $3,120 | $803,559 | 0.39% | F |
| 5BR | $3,619 | $1,423,639 | 0.25% | F |
U.S. Census Bureau data (2024)
The ZIP code 78734, located in Lakeway, TX, is primarily a homeowner-dominated area rather than a renter-heavy zone. With a population of 22,145, only 16.5% of residents are renters, indicating that the majority of the community owns their homes. This characteristic suggests that the demand for Section 8 housing vouchers is likely to be relatively low compared to areas with higher percentages of renters.
The median household income in ZIP 78734 stands at $130,784, which places it among the higher-income brackets. The average market rent for the area is $2,783 per month. To put this into perspective, typical rent consumes approximately 21.3% of the local median income. This calculation is derived from dividing the average market rent ($2,783) by the median household income ($130,784), then multiplying by 100 to get the percentage.
Comparing the market rent to the Fair Market Rent (FMR) set by HUD for FY 2024, which is $2,560, reveals that the market rent in ZIP 78734 exceeds the FMR by $223. This means landlords may face challenges in attracting tenants who rely solely on Section 8 vouchers, as these vouchers are typically capped at the FMR level. Landlords might need to offer lower rents or consider accepting a combination of voucher payments and additional rent contributions from tenants.
In ZIP 78734, landlords can expect a tenant profile that includes individuals and families who either have access to higher-paying jobs or possess financial resources that allow them to afford above-FMR rents. However, those seeking to utilize Section 8 vouchers will likely be limited to the lower end of the rental market, where rents do not exceed the FMR. This implies that landlords focusing on Section 8 tenants must carefully align their rental offerings with the $2,560 FMR threshold to remain competitive and attract eligible tenants.
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.