Section 8 Fair Market Rent (FMR) for ZIP 78759 - 2027

Investment Score for ZIP 78759

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	$1,600
1 Bedroom	$1,690
2 Bedrooms	$2,010
3 Bedrooms	$2,540
4 Bedrooms	$2,970
5 Bedrooms	$3,445
6 Bedrooms	$3,858
7 Bedrooms	$4,167
8 Bedrooms	$4,375

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
1BR	$1,690	$188,414	0.9%	C
2BR	$2,010	$325,396	0.62%	D
3BR	$2,540	$598,085	0.42%	F
4BR	$2,970	$852,224	0.35%	F
5BR	$3,445	$1,077,863	0.32%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 78759 (Austin, TX) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 78759 in Austin, Texas, is set by HUD for 2026. For a two-bedroom unit, the FMR is $2,070, which represents 24.3% of the median household income of $102,400. This suggests that the FMR is relatively affordable compared to the local income levels. However, the actual rent prices in the area can be significantly higher. The Zillow median price for a two-bedroom unit is $328,107, which translates to a monthly rent of approximately $1,367 based on a typical rental yield of 5%. Given the high price-to-FMR ratio of 13.2x, it indicates that actual rents are much higher than the FMR. This creates a significant constraint for voucher holders, who may struggle to find units that are priced at or below the FMR. Landlords might be hesitant to accept vouchers due to the higher administrative burden and the lower rent compared to what they could potentially charge in the open market. As a result, voucher holders often have limited options, and landlords may prefer non-voucher tenants who can pay higher rents. #### Affordability & Renter Profile ZIP code 78759 has a population of 43,182, with 52.9% of residents being renters. This high percentage of renters suggests a strong demand for rental properties in the area. The occupancy rate of 93.8% further supports the notion that the rental market is tight, indicating little vacancy and high competition among renters. Given the median household income of $102,400, the majority of residents are likely middle-class professionals or young families. However, the high price-to-FMR ratio of 13.2x implies that the cost of renting is far above the FMR, making it challenging for low-income households to afford housing without assistance. The median income level also suggests that many residents can afford higher rents, but the significant gap between FMR and actual rents means that affordability remains a key issue for lower-income individuals. #### Investor Angle From an investor perspective, the ZIP code 78759 presents both opportunities and challenges. The FMR for a two-bedroom unit is $2,070, which is considerably lower than the Zillow median price-based rent of approximately $1,367. However, the actual market rents are likely much higher, given the price-to-FMR ratio. To determine if the ZIP code is cash-flow positive at FMR, we need to consider the potential rental income against the mortgage payment. Assuming a typical rental yield of 5%, the monthly rent would be around $1,367. However, the FMR is $2,070, which is substantially higher. If an investor can secure a property at or near the FMR, the cash flow would likely be positive, especially considering the strong demand and high occupancy rates. The investment grade for this ZIP code can be assessed by looking at the stability of the rental market and the likelihood of finding tenants. With a high occupancy rate and a significant portion of the population being renters, the risk of vacancy is low. Additionally, the strong demand for rental properties indicates a stable market. However, the challenge lies in finding properties that are priced at or below the FMR, as the actual market rents are much higher. #### Specific Actionable Insights 1. **Focus on Units Below FMR**: Investors should focus on acquiring properties that are priced at or below the FMR. This will ensure that they can attract voucher holders while maintaining positive cash flow. For example, a two-bedroom unit priced at $2,070 per month would be ideal for attracting voucher holders and providing a stable income stream. 2. **Consider Multi-Family Properties**: Given the high demand for rental properties and the tight market conditions, multi-family properties may offer better returns. These properties can be more easily rented out to multiple tenants, including those with Section 8 vouchers, thereby spreading the risk and increasing the likelihood of positive cash flow. 3. **Engage with Local Real Estate Agents**: To navigate the complexities of the rental market, investors should engage with local real estate agents who are familiar with the area and can provide insights into finding properties that are more likely to be rented by voucher holders. This can help in identifying units that are priced appropriately and have a higher chance of being occupied. #### Bottom Line For Section 8-focused investors, the ZIP code 78759 presents a mixed picture. While there is a strong demand for rental properties and a high occupancy rate, the actual rents are significantly higher than the FMR, creating a challenge for voucher holders. Therefore, the recommendation is to **Hold** on to existing investments in this area, but be cautious about new acquisitions unless they are priced at or below the FMR. Investors should carefully evaluate the potential to attract voucher holders and ensure that the acquisition price allows for positive cash flow at the FMR.

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.