Location: Kerr County, TX | Metro: Kendall County, 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 | $1,180 |
| 1 Bedroom | $1,180 |
| 2 Bedrooms | $1,490 |
| 3 Bedrooms | $1,960 |
| 4 Bedrooms | $1,970 |
| 5 Bedrooms | $2,285 |
| 6 Bedrooms | $2,559 |
| 7 Bedrooms | $2,764 |
| 8 Bedrooms | $2,902 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,960 | $628,576 | 0.31% | F |
| 4BR | $1,970 | $796,266 | 0.25% | F |
U.S. Census Bureau data (2024)
The analysis of Section 8 real estate in ZIP code 78013 reveals a significant gap between the Fair Market Rent (FMR) set by HUD and the actual market rent. The FMR for ZIP 78013 in fiscal year 2024 is $1360, while the average market rent based on Census ACS data is $969. This represents a difference of $391 per month, or approximately 40.3%.
Given that the FMR exceeds the market rent, this ZIP code presents a yield opportunity for landlords and small-portfolio investors. Voucher tenants can provide a stable and predictable income stream, ensuring that rental properties are occupied and generating revenue at a rate above the local market average. This scenario is particularly favorable in an area where only 12.1% of residents are renters, indicating a relatively low supply of rental units compared to demand.
The median home value in ZIP 78013 is $550,374, which suggests a higher-end residential market. However, the median income of $82,492 indicates that many residents may still struggle to afford market-rate rents, making Section 8 vouchers a viable option for securing housing. Landlords should be aware that while the FMR provides a higher rent ceiling, the actual rental income may be influenced by local housing authority policies and utility allowances.
In conclusion, the disparity between FMR and market rent in ZIP 78013 offers a strategic advantage for investors willing to accept Section 8 tenants. This gap allows for a potential increase in rental yields, aligning with the financial benefits of having a tenant whose rent is guaranteed by the government. However, it's important to understand the nuances of the local housing market and the implications of accepting voucher tenants to maximize returns and minimize risks.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.