Section 8 Fair Market Rent (FMR) for ZIP 78006 - 2027

Investment Score for ZIP 78006

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,310
1 Bedroom	$1,340
2 Bedrooms	$1,700
3 Bedrooms	$2,340
4 Bedrooms	$2,550
5 Bedrooms	$2,958
6 Bedrooms	$3,313
7 Bedrooms	$3,578
8 Bedrooms	$3,757

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,700	$380,176	0.45%	F
3BR	$2,340	$495,253	0.47%	F
4BR	$2,550	$637,762	0.4%	F
5BR	$2,958	$896,079	0.33%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 78006 (Boerne, TX) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 78006 (Boerne, TX) in Kendall County, as per the 2026 data, are as follows: - 0BR: $1340 - 1BR: $1370 - 2BR: $1710 - 3BR: $2250 - 4BR: $2310 To understand how these FMRs compare to actual rents, we need to consider the occupancy rate and the renter percentage. With a 93.5% occupancy rate, the rental market is quite tight, indicating that there is high demand for rental units. The renter percentage of 23.3% suggests that a significant portion of the population relies on rental housing, but it is still a minority compared to homeownership. Given the high occupancy rate and the relatively low renter percentage, landlords can likely charge higher rents than the FMR. For instance, the Zillow median price for a 2BR home is $372,096, which translates to a monthly mortgage payment of approximately $1,500 assuming a 30-year fixed-rate mortgage at 4.5%. This is already close to the FMR for a 2BR unit, which is $1710. However, the price-to-FMR ratio of 18.1x indicates that the median home value is significantly higher than the FMR, suggesting that actual rents could be much higher than the FMR. This creates a constraint for voucher holders, who may struggle to find units that accept their vouchers due to the limited supply and the tendency of landlords to charge above FMR. Additionally, the high cost of living in Boerne means that even if landlords accept vouchers, they might face challenges in covering their costs if they are charging near the FMR. #### Affordability & Renter Profile The median household income in Boerne is $116,156, which places it in a high-income bracket. A 2BR unit at the FMR of $1710 represents only 17.7% of the median income, making it relatively affordable for those earning the median income. However, given the high occupancy rate and the fact that actual rents could be much higher than the FMR, affordability becomes a concern for lower-income households. The tight rental market implies that there is strong competition among renters, which could drive up rents further. This situation is particularly challenging for voucher holders who are limited by the FMR caps. Given the high median income, the typical renter in Boerne is likely to be a middle-class individual or family who can afford higher rents. The high occupancy rate also suggests that there is little oversupply, meaning that the market is balanced or slightly favoring landlords. #### Investor Angle From an investor’s perspective, the ZIP code 78006 presents a mixed picture. While the median home value for a 2BR unit is $372,096, which translates to a monthly mortgage payment of around $1,500, the actual rents charged could be significantly higher than the FMR. If landlords are able to charge closer to the median rent levels, the investment would be cash-flow positive. However, the challenge lies in finding tenants willing to pay the FMR. Given the high median income and the tight rental market, investors should consider the following: - The potential to charge above FMR, leading to higher cash flows. - The risk of having a unit that is not occupied because it is too expensive for voucher holders. - The overall demand for rental properties, which is strong based on the occupancy rate. The investment grade for this ZIP code would be moderate to high, considering the strong demand and the potential for higher-than-FMR rents. However, the reliance on Section 8 vouchers would require careful consideration of the local rental dynamics and the willingness of landlords to accept vouchers. #### Specific Actionable Insights 1. **Focus on Units Accepting Higher Rents**: Investors should target properties that can command rents above the FMR. Given the high median income and the tight rental market, there is a good chance that such units will be occupied and generate positive cash flow. For example, a 2BR unit could potentially rent for $2000-$2500 per month, significantly above the FMR of $1710. 2. **Consider Mixed-Income Developments**: Developments that cater to both voucher holders and higher-paying tenants could be a viable strategy. By offering a mix of units at different price points, investors can ensure a steady stream of income while also providing affordable housing options. This approach would help mitigate the risk associated with relying solely on Section 8 vouchers. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 78006 is to **Skip**. The high median income and tight rental market make it difficult to find units that are priced at or below the FMR. Additionally, the limited number of voucher holders relative to the total population suggests that the demand for Section 8 units is not as robust as in other areas. Investors looking to enter the Boerne market should focus on properties that can command higher rents, which would provide better returns and align with the local rental dynamics. Alternatively, they could explore mixed-income developments that offer a range of pricing options to cater to different segments of the rental market.

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.