Location: Fayette 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: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,670 | $264,896 | 0.63% | D |
| 3BR | $2,120 | $320,792 | 0.66% | D |
| 4BR | $2,490 | $447,230 | 0.56% | F |
U.S. Census Bureau data (2024)
ZIP 78957, located in Smithville, TX, within the Fayette County metro area, serves as an ideal appreciation play within a Section 8 portfolio strategy. The Federal Market Rent (FMR) for the fiscal year 2024 is set at $1530, while the current market rent stands at $1383. This indicates that properties in this ZIP code are currently undervalued relative to the FMR, providing a potential for future appreciation.
The median home value in ZIP 78957 is $335,397, and only 0.2% of listings are sold with a price cut, suggesting that the local real estate market is relatively stable and resilient. Additionally, the average days on market (DOM) is not applicable here, which implies that homes are generally selling quickly once listed, further supporting the notion of a strong and appreciating market.
The low price-cut share and quick sales indicate a seller's market where property values are likely to rise over time. For Section 8 landlords and small-portfolio investors, this ZIP code offers a strategic opportunity to invest in properties that will likely see increased equity and value in the coming years. Although the current market rent is below the FMR, the potential for appreciation makes this ZIP code a solid choice for long-term investment growth.
Furthermore, with a renter share of 27.4%, there is a significant demand for rental properties in the area. The median income of $69,149 suggests that residents have the financial stability to support steady rental payments, making it easier for landlords to find qualified tenants who meet the income requirements for Section 8 housing vouchers.
In summary, ZIP 78957 is best suited as an appreciation play within a Section 8 portfolio strategy due to its undervalued market rents relative to the FMR, stable real estate market, and a robust tenant base with sufficient income to support rental obligations.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.