Location: Kerr County, TX | Metro: Kerr County, TX
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 | $820 |
| 1 Bedroom | $960 |
| 2 Bedrooms | $1,080 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,420 |
| 5 Bedrooms | $1,647 |
| 6 Bedrooms | $1,845 |
| 7 Bedrooms | $1,993 |
| 8 Bedrooms | $2,093 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,410 | $393,151 | 0.36% | F |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 78025, set at $1,020 for metro fiscal year 2026, is the payment standard used by the Section 8 program. This means the government will pay up to $1,020 per month for a unit in this area, but it's important to note that this is not necessarily the amount you can charge tenants. The actual rent you can receive is based on the tenant's income and is subject to certain limits.
To put this into perspective, the average rent for a two-bedroom apartment in ZIP 78025 is $1,105, according to the latest Census American Community Survey (ACS) data. This suggests that the FMR is slightly below the market rate, indicating a potential gap between what the government pays and what you might expect to collect from your tenants' portion of the rent.
The demand for rental properties in this area is substantial, with 23.4% of residents being renters. This high percentage of renters indicates a strong market for rental units, including those participating in the Section 8 program. However, the competition for tenants can be fierce, especially given the slightly lower FMR compared to the market rent.
If you're considering acquiring a property for your first Section 8 rental in ZIP 78025, the median home value stands at $374,636. This figure represents the typical price you would need to pay for a home in this area, which should factor into your investment calculations. Remember, the acquisition cost is just one part of the equation; maintenance, management fees, and vacancy rates also play crucial roles in determining profitability.
Before making a final decision, ensure you verify the rental history of the property you're interested in. Check if it has been part of the Section 8 program previously and review any records of maintenance issues or tenant behavior that could affect its performance under the program.
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.