Section 8 Fair Market Rent (FMR) for ZIP 78765 - 2027

FY 2027 Fair Market Rent Rates

To understand the economics of Section 8 in ZIP code 78765, which is part of the Austin-Round Rock-San Marcos County area in Texas, it's essential to know the key figures involved. The SAFMR (Section 8 Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code is set at $1950 per month for the fiscal year 2024.

The SAFMR represents the maximum amount that the Housing Choice Voucher program will pay toward a tenant's rent. However, the actual reimbursement to landlords depends on several factors, including the tenant's contribution and any utility allowances. Here’s a breakdown:

• Tenant Contribution: Tenants typically contribute 30% of their adjusted income towards rent. If we assume an average adjusted income of $1600 for a tenant in this area, the contribution would be approximately $480 per month.
• Utility Allowance: Utility allowances vary but are generally around $150-$250 per month. For simplicity, let's use an average allowance of $200.

The total monthly rent that a landlord can expect from a Section 8 voucher is the sum of the tenant's contribution and the utility allowance. In this case, it would be $480 (tenant contribution) + $200 (utility allowance) = $680. Therefore, the landlord would receive $680 directly from the tenant and the utility allowance, plus the remaining amount up to the SAFMR limit of $1950 from the housing authority.

This means the housing authority would cover the difference between the SAFMR and the tenant's contribution, which is $1950 - $480 = $1470. So, the landlord receives $1470 from the housing authority plus the $680 from the tenant, totaling $2150 per month.

Given that the SAFMR for a two-bedroom unit is $1950, and the landlord receives $2150 when accounting for the tenant's contribution and utility allowance, there is a surplus of $200 per month. This surplus occurs because the total reimbursement exceeds the SAFMR limit set for the ZIP code. Landlords should note that while this surplus exists, it is subject to change based on the tenant's income and any adjustments to utility allowances.

In summary, landlords in ZIP 78765 can expect a stable and predictable rental income of $1950 for a two-bedroom unit, with an additional $200 surplus due to the way Section 8 payments are structured. This makes Section 8 vouchers a reliable source of rental income, even if it's slightly below the market rates which are currently unavailable for this ZIP code.

Data Sources: FMR data from HUD (2027).

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.