Location: Kendall County, TX | Metro: Kendall County, TX HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,210 |
| 1 Bedroom | $1,270 |
| 2 Bedrooms | $1,580 |
| 3 Bedrooms | $2,120 |
| 4 Bedrooms | $2,370 |
| 5 Bedrooms | $2,749 |
| 6 Bedrooms | $3,079 |
| 7 Bedrooms | $3,325 |
| 8 Bedrooms | $3,491 |
U.S. Census Bureau data (2024)
In ZIP code 78004, the economics of Section 8 housing can be analyzed using the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment, which is set at $1700 for fiscal year 2024. This figure is specifically tailored for this ZIP code, reflecting the unique rental market conditions present here.
The SAFMR of $1700 represents the maximum amount that the Housing Choice Voucher Program will pay towards a tenant's rent. However, it's crucial to understand that this payment is not the entirety of the rent a landlord receives. The tenant is responsible for paying approximately 30% of their adjusted income towards the rent, plus any utility allowances. The utility allowance varies but typically ranges between $200-$300 per month, depending on the tenant's situation and local guidelines.
To illustrate, let's assume a tenant has an adjusted monthly income of $1500. Thirty percent of this income amounts to $450, which the tenant must contribute toward the rent. If we factor in a utility allowance of $250, the total contribution from the tenant would be $700 ($450 for rent and $250 for utilities).
This leaves the voucher program to cover the remaining portion of the rent. In this case, with a SAFMR of $1700, the voucher would pay $1000 ($1700 - $700) directly to the landlord for the rent. Thus, the landlord would receive a total of $1700 per month for a two-bedroom unit: $700 from the tenant and $1000 from the voucher program.
However, if the local market rent for a two-bedroom apartment exceeds the SAFMR of $1700, there will be a reimbursement gap. Landlords must ensure that their rental rates do not exceed the SAFMR to avoid losing tenants who rely on vouchers. Conversely, if the local market rent is below the SAFMR, landlords might see a surplus, meaning they could potentially charge less and still receive the full SAFMR amount from the voucher program.
Given the lack of specific local market rent data, it's important for landlords in ZIP 78004 to monitor their local rental market closely. They should aim to set their rents close to the SAFMR of $1700 to maximize their income while remaining competitive in the market. If the local market rent were hypothetically lower, say $1600, landlords would still receive $1700 per month, resulting in a surplus of $100. Conversely, if the market rent were higher, landlords would need to adjust their expectations to align with the SAFMR, avoiding a reimbursement gap.
Landlords must also consider that the SAFMR is subject to annual adjustments based on changes in the local rental market. Therefore, staying informed about these changes is key to maintaining a successful Section 8 property management strategy.
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.