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 | $1,640 |
| 1 Bedroom | $1,730 |
| 2 Bedrooms | $2,060 |
| 3 Bedrooms | $2,600 |
| 4 Bedrooms | $3,050 |
| 5 Bedrooms | $3,538 |
| 6 Bedrooms | $3,963 |
| 7 Bedrooms | $4,280 |
| 8 Bedrooms | $4,494 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,060 | $343,303 | 0.6% | D |
| 3BR | $2,600 | $517,980 | 0.5% | F |
| 4BR | $3,050 | $636,063 | 0.48% | F |
| 5BR | $3,538 | $762,253 | 0.46% | F |
U.S. Census Bureau data (2024)
The real estate market in ZIP 78749, Austin, TX, presents a compelling landscape for both landlords and small-portfolio investors. With a median home value of $555,241, the area maintains a premium position within the city. The fact that only 0.2% of listings have been reduced signals strong seller pricing power, suggesting that homes are holding their value well. This stability is further supported by a 54-day median Days on Market (DOM), indicating a brisk pace of sales and underscoring the demand for properties in this ZIP code.
On the rental side, the disparity between the Fair Market Rent (FMR) set at $2,160 for fiscal year 2024 and the actual Zillow Observed Rental Index (ZORI) of $1,496 reveals an opportunity for landlords. The higher FMR suggests a potential upward pressure on rents, aligning with the overall trend of increasing costs in Austin. However, the current market rate indicates that there is still room for rental growth without alienating tenants.
For long-term investors, the setup in ZIP 78749 implies a steady appreciation thesis. The combination of high home values, low listing reductions, and relatively short DOM periods points to a resilient market. Additionally, the gap between FMR and current market rents suggests that rental income can be adjusted upwards over time, providing a solid foundation for property value growth. While direct predictions are avoided, the data strongly indicates that maintaining or slightly increasing rental rates will likely keep pace with the broader market trends, ensuring that investments in this area remain valuable.
The robust seller's market and favorable rental dynamics create a scenario where landlords and investors can expect continued demand for their properties. This demand supports both the maintenance of property values and the potential for gradual appreciation, making ZIP 78749 a stable and potentially profitable investment destination.
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.