Location: Fayette County, TX | Metro: Austin County, TX HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $990 |
| 1 Bedroom | $1,110 |
| 2 Bedrooms | $1,300 |
| 3 Bedrooms | $1,760 |
| 4 Bedrooms | $1,920 |
| 5 Bedrooms | $2,227 |
| 6 Bedrooms | $2,494 |
| 7 Bedrooms | $2,694 |
| 8 Bedrooms | $2,829 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 78954 in the Fayette County, TX metro area reveals several key points regarding its suitability for Section 8 real estate investments.
First, the rent math does not favor Section 8 participation. The Fair Market Rent (FMR) for ZIP 78954 in fiscal year 2024 is set at $920, which is significantly below the market rent of $1,141 according to Census ACS data. This means that landlords would be renting their properties below the market rate, potentially leaving money on the table.
Second, while the median home value stands at $1,210,275, the lack of available data on days on market (DOM) and the fact that only 0.1% of homes have been subject to price cuts suggest that the acquisition cost is high but stable. However, the premium valuation might deter potential buyers looking for affordability, especially when considering the limited price flexibility in the market.
Third, the tenant demand in ZIP 78954 is low. With a total population of 1,173 and only 8.1% being renters, the pool of potential Section 8 tenants is minimal. This could result in challenges in finding qualified applicants for rental properties.
In summary, ZIP 78954 presents a challenging environment for Section 8 real estate investments. The discrepancy between the FMR and market rent rates makes the economics unfavorable for landlords, while the high median home value and low renter share indicate limited tenant demand and higher acquisition costs. These factors collectively suggest that this area is not ideal for such investments.
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.