Location: Kerr County, TX | Metro: San Antonio-New Braunfels, TX HUD Metro FMR Area
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 | $910 |
| 1 Bedroom | $970 |
| 2 Bedrooms | $1,190 |
| 3 Bedrooms | $1,540 |
| 4 Bedrooms | $1,770 |
| 5 Bedrooms | $2,053 |
| 6 Bedrooms | $2,299 |
| 7 Bedrooms | $2,483 |
| 8 Bedrooms | $2,607 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,190 | $246,210 | 0.48% | F |
| 3BR | $1,540 | $393,679 | 0.39% | F |
| 4BR | $1,770 | $510,338 | 0.35% | F |
U.S. Census Bureau data (2024)
The ZIP code 78003, located in Bandera, TX, is home to 9,967 residents, with 17.4% of them being renters. This indicates that the area is primarily dominated by homeowners rather than renters, suggesting that the demand for rental properties, especially those accepting Section 8 vouchers, may be relatively low. The median household income in this ZIP is $69,457, which provides a benchmark for assessing the affordability of housing.
Average market rent in the area is $1,216 per month. To put this into perspective, typical rent consumes approximately 17.5% of the median household income. This percentage aligns closely with the Fair Market Rent (FMR) figure of $1,210 for FY 2024, indicating that rents are fairly consistent with federal standards.
Landlords and small-portfolio investors operating in ZIP 78003 should anticipate a tenant profile that includes individuals who are likely to be sensitive to the cost of living. Given the median income and average rent, tenants will need to manage their budgets carefully, allocating nearly one-fifth of their monthly earnings to housing costs. This scenario underscores the importance of maintaining competitive pricing and ensuring that properties meet the criteria for Section 8 eligibility, such as passing inspection requirements and adhering to quality standards.
In summary, while Bandera, TX has a small but significant rental population, the primary market trend leans towards homeownership. Landlords should prepare for a tenant pool that is financially cautious and values stable, affordable housing options. Rents should be set close to the FMR to attract tenants effectively, particularly those relying on Section 8 vouchers.
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.