Section 8 Fair Market Rent (FMR) for ZIP 78744 - 2027

Investment Score for ZIP 78744

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	$1,350
1 Bedroom	$1,430
2 Bedrooms	$1,700
3 Bedrooms	$2,140
4 Bedrooms	$2,520
5 Bedrooms	$2,923
6 Bedrooms	$3,274
7 Bedrooms	$3,536
8 Bedrooms	$3,713

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
2BR	$1,700	$284,406	0.6%	F
3BR	$2,140	$330,703	0.65%	D
4BR	$2,520	$403,640	0.62%	D
5BR	$2,923	$442,684	0.66%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 78744 (Austin, TX) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 78744, as per the 2026 data, is set at $1760 for a two-bedroom unit. This represents 25.4% of the median household income of $83,002. However, the actual rent charged for a two-bedroom unit in this area is significantly higher, with Zillow reporting a median price of $291,436. The price-to-FMR ratio of 13.8x indicates that the actual rent is nearly 14 times the FMR. This means that tenants using Section 8 vouchers would face substantial difficulties in finding rental properties within their budget constraints. For example, a landlord renting a two-bedroom unit for $291,436 would be far above the $1760 limit set by the FMR, making it impossible for a tenant with a Section 8 voucher to afford such a property. #### Affordability & Renter Profile ZIP code 78744 has a population of 50,986, with 49.0% of residents being renters. The occupancy rate stands at 95.9%, suggesting that the housing market is quite tight. Given that the median household income is $83,002, and the FMR for a two-bedroom unit is $1760, which is 25.4% of the median income, it is clear that the majority of renters are likely to be middle-income families who can afford the higher rents. However, low-income families relying on Section 8 vouchers would struggle to find affordable housing, as the actual rents far exceed the FMR limits. #### Investor Angle From an investor's perspective, the ZIP code 78744 presents a challenging scenario for those focusing on Section 8 vouchers. The FMR for a two-bedroom unit is $1760, while the actual median rent reported by Zillow is $291,436, indicating that the market is not aligned with the FMR. This discrepancy suggests that landlords who rely solely on Section 8 vouchers would have difficulty generating positive cash flow due to the significant gap between the FMR and actual market rents. The high price-to-FMR ratio of 13.8x implies that the investment grade for this ZIP code is poor for Section 8-focused investors, as they would need to accept much lower rents compared to the market average. #### Specific Actionable Insights 1. **Rent Adjustment for Vouchers**: Landlords should consider adjusting their rental prices to align with the FMR if they wish to attract Section 8 voucher holders. For instance, setting the rent for a two-bedroom unit at $1760 would make the property accessible to these tenants, although it would mean accepting a much lower rent compared to the market average. 2. **Targeting Middle-Income Renters**: Given the tight market and high actual rents, investors might want to target middle-income renters who can afford the higher market rates. This strategy would likely result in better cash flow and a more stable tenant base, as middle-income families are less likely to face the same financial constraints as low-income families. #### Bottom Line For Section 8-focused investors, the ZIP code 78744 is not recommended for buying or investing due to the significant disparity between the FMR and actual market rents. The high price-to-FMR ratio of 13.8x makes it difficult to generate positive cash flow when adhering to the FMR guidelines. Therefore, the recommendation is to **skip** this ZIP code for Section 8 investments. Investors interested in this area should instead focus on middle-income renters who can pay market rates, ensuring better returns and stability.

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.