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 | $1,560 |
| 1 Bedroom | $1,650 |
| 2 Bedrooms | $1,960 |
| 3 Bedrooms | $2,470 |
| 4 Bedrooms | $2,900 |
| 5 Bedrooms | $3,364 |
| 6 Bedrooms | $3,768 |
| 7 Bedrooms | $4,069 |
| 8 Bedrooms | $4,272 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,960 | $298,869 | 0.66% | D |
| 3BR | $2,470 | $342,791 | 0.72% | D |
| 4BR | $2,900 | $384,330 | 0.75% | D |
| 5BR | $3,364 | $431,646 | 0.78% | D |
U.S. Census Bureau data (2024)
Austin, TX's ZIP code 78747 is characterized by a diverse residential area with a population of 22,180 residents. This neighborhood has a significant rental market, with 33.2% of the population being renters. The median household income in the area stands at $92,748, indicating a relatively affluent community. Additionally, the median home value is notably high at $365,955, reflecting the overall economic status of the residents.
The economic landscape of 78747 becomes particularly interesting when considering the rent dynamics. The Fair Market Rent (FMR) for the area, as determined by HUD for fiscal year 2024, is set at $2,260. In contrast, the actual market rent, measured by ZORI (Zillow Observed Rental Index), is significantly lower at $1,489. This substantial gap between the FMR and the market rent suggests an opportunity for landlords and small-portfolio investors to benefit from the federal subsidies available through the Section 8 program.
Given these conditions, ZIP 78747 can be seen as fitting both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the area provides a stable source of income through Section 8 vouchers, with minimal risk due to the higher median income and home values. Meanwhile, value-add buyers might find potential in upgrading properties to match the higher FMR standards, thereby attracting tenants willing to pay closer to the FMR rates, thus increasing profitability. However, the choice between these strategies should be informed by the specific goals and capabilities of the investor.
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.