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 | $1,750 |
| 1 Bedroom | $1,850 |
| 2 Bedrooms | $2,200 |
| 3 Bedrooms | $2,770 |
| 4 Bedrooms | $3,260 |
| 5 Bedrooms | $3,782 |
| 6 Bedrooms | $4,236 |
| 7 Bedrooms | $4,575 |
| 8 Bedrooms | $4,804 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,850 | $215,295 | 0.86% | C |
| 2BR | $2,200 | $489,164 | 0.45% | F |
| 3BR | $2,770 | $681,482 | 0.41% | F |
| 4BR | $3,260 | $917,528 | 0.36% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP code 78751, located in Austin, TX, does not work favorably for landlords. The Fair Market Rent (FMR) for FY 2024 is set at $2340, which significantly exceeds the market rent indicated by the Zillow Observed Rental Index (ZORI) at $1535. This discrepancy means that landlords may struggle to find tenants willing to pay the higher FMR rate, especially when the actual market rate is substantially lower.
Acquisition in this area is moderately affordable, with a median home value of $603,215. However, the lack of data on days on market (DOM) and the low price-cut share of 0.2% suggest that homes are selling quickly without significant price reductions. This indicates a competitive market where quick action is necessary to secure properties, but it also implies that the current values are stable and not likely to drop drastically.
Tenant demand in ZIP 78751 is strong. With a population of 16,961, and 77.1% of residents being renters, there is a robust pool of potential tenants. The high renter share suggests that many people in this area are already accustomed to paying rent, making it easier for landlords to fill vacancies.
In summary, while the rent math presents a challenge due to the disparity between FMR and market rates, the strong tenant demand and moderately affordable acquisitions make ZIP 78751 a viable investment opportunity. Landlords should focus on understanding local market conditions and setting realistic rental prices to attract tenants, rather than relying on the higher FMR figures. The competitive nature of property sales requires swift decision-making, but the stability in home values and the high percentage of renters provide solid foundations for successful investments.
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.