Location: Austin-Round Rock-San Marcos, TX | Metro: Austin-Round Rock-San Marcos, TX MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,350 |
| 1 Bedroom | $1,430 |
| 2 Bedrooms | $1,690 |
| 3 Bedrooms | $2,140 |
| 4 Bedrooms | $2,520 |
| 5 Bedrooms | $2,923 |
| 6 Bedrooms | $3,274 |
| 7 Bedrooms | $3,536 |
| 8 Bedrooms | $3,713 |
U.S. Census Bureau data (2024)
The median income in ZIP code 78953 stands at $83,438, which places residents in a moderate income bracket. However, the absence of specific market rate rental data (N/A) makes it challenging to assess how well these incomes align with local rent costs directly. Instead, we can examine the situation through the lens of the Fair Market Rent (FMR) set by the government, which for ZIP 78953 in fiscal year 2024 is $1890. This figure represents a benchmark for what the government deems affordable for low-income households.
Given the median income, most households should be able to afford higher rents than the FMR suggests. The voucher payment standard of $1890 is likely to cover only a portion of the market, indicating that many residents might prefer to pay more for better quality or larger living spaces. With 17.0% of the population being renters and a total population of 1,089, there are approximately 185 rental units occupied in this ZIP code. This relatively small number of renters means that landlords face stiff competition for tenants who can afford above-voucher rates.
The affordability gap between the median income and the FMR highlights a significant challenge for landlords considering their tenant mix. While there are opportunities to attract cash-paying tenants willing to pay more than the voucher amount, the limited number of renters suggests that competition will be intense. Landlords must weigh the benefits of accepting higher-paying tenants against the security and reliability of having voucher recipients as tenants.
Takeaway for landlords: Accepting Section 8 vouchers can provide a steady stream of income and reduce vacancy risks given the limited number of renters. However, pursuing cash-paying tenants could yield higher revenues, but requires a competitive edge in terms of property quality and location. Landlords should consider the balance between these two strategies based on their property's characteristics and the local rental market dynamics.
Data Sources: FMR data from HUD (2027). 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.