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 | $2,170 |
| 1 Bedroom | $2,300 |
| 2 Bedrooms | $2,730 |
| 3 Bedrooms | $3,440 |
| 4 Bedrooms | $4,040 |
| 5 Bedrooms | $4,686 |
| 6 Bedrooms | $5,248 |
| 7 Bedrooms | $5,668 |
| 8 Bedrooms | $5,951 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $3,440 | $661,760 | 0.52% | F |
| 4BR | $4,040 | $821,551 | 0.49% | F |
| 5BR | $4,686 | $964,895 | 0.49% | F |
U.S. Census Bureau data (2024)
ZIP code 78739, located within the Austin-Round Rock-San Marcos, TX MSA, presents a unique profile compared to typical ZIP codes in this metropolitan area. The Fair Market Rent (FMR) for 78739 is set at $2890 for fiscal year 2024, which is notably lower than the market rent of $3,225. This suggests that while government-assisted rental rates are slightly below market expectations, there remains a gap indicating potential for modest profitability.
The median home value in 78739 is $803,866, placing it above the average for the Austin-Round Rock-San Marcos, TX MSA. However, the 7.2% renter share is significantly lower than what might be expected in a premium sub-market. Typically, areas with higher home values also have a larger proportion of renters due to affordability constraints. In contrast, ZIP 78739's relatively low renter share implies a predominantly owner-occupied community.
To determine if 78739 is a value pocket, a mid-tier neighborhood, or a premium sub-market, consider the following:
The FMR being lower than the market rent indicates that 78739 is not a primary target for low-income housing programs. Landlords should be aware that while they can charge above FMR, the number of tenants eligible for Section 8 assistance may be limited.
The high median home value suggests that this ZIP code is not a value pocket but rather leans towards a premium sub-market. However, the low renter share complicates this categorization, as it points to a less dense rental market.
The divergence between high home values and a low renter share does not signal a typical Section 8 sweet spot. A sweet spot would usually present with both below-average home values and a higher-than-average renter share, conditions that facilitate greater access to Section 8 tenants.
In summary, ZIP 78739 is best characterized as a premium sub-market within the Austin-Round Rock-San Marcos, TX MSA, given its high home values. Its low renter share and slightly below-market FMR suggest it is not an optimal location for landlords seeking to maximize their Section 8 tenant base. For small-portfolio investors, the area offers opportunities in owner-occupied properties, though rental investments may face challenges in attracting subsidized tenants.
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.