Location: Medina County, TX | Metro: Medina 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 | $890 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,170 |
| 3 Bedrooms | $1,520 |
| 4 Bedrooms | $1,650 |
| 5 Bedrooms | $1,914 |
| 6 Bedrooms | $2,144 |
| 7 Bedrooms | $2,316 |
| 8 Bedrooms | $2,432 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,520 | $381,553 | 0.4% | F |
| 4BR | $1,650 | $448,359 | 0.37% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 78059 are governed by the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment, which is set at $1050 for fiscal year 2024. This SAFMR figure is specific to this ZIP code, reflecting the localized rental market conditions. The local market rent, according to Census ACS data, is slightly higher at $1,208.
A landlord participating in the Section 8 program will receive payments based on the SAFMR. However, the total reimbursement includes more than just the base rent. It also accounts for the tenant's portion of the rent and any utility allowances. Typically, the tenant is responsible for paying 30% of their income towards rent. If we assume an average income for a household eligible for Section 8, this could be around $15,000 annually, or roughly $1,250 monthly. Thirty percent of this amount would be approximately $375, which the tenant contributes towards the rent.
In addition to the tenant's contribution, the utility allowance can vary but is often around $100-$150 per month. For simplicity, let’s use $125 as the utility allowance. Therefore, the total reimbursement a landlord might expect from a Section 8 voucher for a two-bedroom unit in ZIP 78059 would be the sum of the SAFMR and the tenant's portion plus utilities:
This sums up to $1550. However, it’s important to note that the actual reimbursement might be less if the tenant’s income is lower, or if the utility allowance is adjusted downward based on local standards. Conversely, it could be more if the tenant’s income is higher or if there are special circumstances that increase the utility allowance.
To determine the reimbursement gap or surplus, compare the total reimbursement ($1550) to the local market rent ($1,208). In this case, the reimbursement exceeds the local market rent, providing a surplus of $342 per month. This means landlords who participate in the Section 8 program for this ZIP code can expect to receive more than the typical market rent for a two-bedroom unit, effectively covering the rent and utilities while also providing a bit extra.
However, landlords should consider that the total surplus is not always liquid cash. Utility allowances and tenant contributions must still cover their intended purposes. Landlords should also factor in potential administrative costs associated with managing a Section 8 property, such as inspections and paperwork.
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.