Location: Lee County, 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 | $1,330 |
| 1 Bedroom | $1,410 |
| 2 Bedrooms | $1,670 |
| 3 Bedrooms | $2,120 |
| 4 Bedrooms | $2,490 |
| 5 Bedrooms | $2,888 |
| 6 Bedrooms | $3,235 |
| 7 Bedrooms | $3,494 |
| 8 Bedrooms | $3,669 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,120 | $295,946 | 0.72% | D |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 78942 are governed by the SAFMR (Small Area Fair Market Rent) which is set specifically for this ZIP code. For a two-bedroom apartment, the SAFMR for FY 2024 is $1470. However, the local market rent, according to Census ACS data, is $1088.
A landlord participating in the Section 8 program should understand the payment structure. The voucher payment is calculated based on the difference between the SAFMR and the tenant's portion of the rent, which is typically 30% of their income. Additionally, there are utility allowances that can vary but are usually around $100-$200 per month for a two-bedroom unit.
To break it down further:
Let's assume a household's adjusted monthly income is $1500. Their portion would be $450 (30% of $1500). If we use an average utility allowance of $150, the total government payment would be $1470 - $450 = $1020, plus the $150 for utilities, making the total reimbursement $1170.
This means that in ZIP 78942, where the local market rent is $1088, a landlord could receive a slightly higher reimbursement of $1170 compared to the typical market rate. However, the reimbursement is capped at the SAFMR of $1470, so if the local market rent were higher, the landlord might not receive the full market value.
In conclusion, for a two-bedroom apartment in ZIP 78942, landlords can expect a reimbursement that is roughly $82 above the local market rent of $1088, given the utility allowance. This creates a surplus for the landlord, making participation in the Section 8 program financially beneficial in this area.
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.