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 | $349,710 | 0.61% | D |
| 4BR | $2,490 | $476,399 | 0.52% | F |
U.S. Census Bureau data (2024)
The real estate market in ZIP 78945 presents a unique opportunity for landlords and small-portfolio investors. With a median home value of $384,176, the area is positioned in a moderate price range, which typically indicates a balanced market where neither buyers nor sellers hold overwhelming pricing power. The fact that only 0.2% of listings have been reduced signals a seller's market, as it suggests that homes are selling at or near their asking prices without significant negotiation. This trend is likely to continue over the next 12-24 months, implying that landlords can maintain strong pricing power when setting rental rates.
The median days on market (DOM) being listed as N/A could indicate either a very active market where homes sell quickly, or a less active market with fewer sales transactions. Given the low percentage of reduced listings, it is reasonable to assume the former, suggesting homes are selling rapidly and indicating a robust demand environment.
On the rental side, the disparity between the Fair Market Rent (FMR) set at $1610 for ZIP 78945 in fiscal year 2024 and the current market rate of $969 based on Census ACS data points to a potential upward pressure on rents. Landlords who align their rental prices closer to the FMR can attract higher-quality tenants and potentially increase their cash flow. However, this should be done cautiously, considering the local economic conditions and job market stability.
For long-term investors, the setup implies a realistic appreciation thesis, but it is contingent upon broader economic factors such as employment growth, migration trends, and infrastructure development. The strong seller's market and rapid sale times suggest that property values are stable and could appreciate, especially if the rental market continues to show signs of strengthening. However, appreciation is not guaranteed and will depend on how these external factors evolve.
In summary, the combination of a moderate median home value, a low percentage of reduced listings, and a potential gap between FMR and current market rents signals a favorable environment for landlords and small-portfolio investors. Pricing power is likely to remain strong, and there is a foundation for an appreciation thesis, though it requires careful monitoring of local economic indicators.
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.