Location: Austin-Round Rock-San Marcos, TX | Metro: Austin-Round Rock-San Marcos, TX MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,330 |
| 1 Bedroom | $1,410 |
| 2 Bedrooms | $1,670 |
| 3 Bedrooms | $2,120 |
| 4 Bedrooms | $2,490 |
| 5 Bedrooms | $2,888 |
| 6 Bedrooms | $3,235 |
| 7 Bedrooms | $3,494 |
| 8 Bedrooms | $3,669 |
U.S. Census Bureau data (2024)
In ZIP code 78742, potential pitfalls for Section 8 landlords include higher tenant turnover rates due to the discrepancy between the market rent of $1,328 and the Federal Market Rent (FMR) of $1,610 for FY 2024. This gap can lead to dissatisfaction among tenants who might find it difficult to cover the difference, resulting in frequent moves. Additionally, the vacancy exposure is a significant concern since the days on market (DOM) is listed as N/A, indicating unreliable data which can suggest unpredictable periods of vacancy. The deferred maintenance exposure is also a challenge, as the typical home value and median income are both listed as N/A, making it hard to gauge the financial health of potential tenants and their ability to maintain properties adequately.
However, these risks are somewhat mitigated by the high renter share in the area, which stands at 42.5%. High renter density typically translates into greater demand for rental housing, including those utilizing Section 8 vouchers. This increased demand can help landlords fill vacancies faster and potentially secure long-term tenants who value stable housing options.
Verdict: Moderate risk for a first-time Section 8 landlord.
Data Sources: FMR data from HUD (2027). 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.