Location: Kerr County, TX | Metro: San Antonio-New Braunfels, 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 | $950 |
| 1 Bedroom | $1,050 |
| 2 Bedrooms | $1,270 |
| 3 Bedrooms | $1,620 |
| 4 Bedrooms | $1,890 |
| 5 Bedrooms | $2,192 |
| 6 Bedrooms | $2,455 |
| 7 Bedrooms | $2,651 |
| 8 Bedrooms | $2,784 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,270 | $253,552 | 0.5% | F |
| 3BR | $1,620 | $386,194 | 0.42% | F |
| 4BR | $1,890 | $549,209 | 0.34% | F |
U.S. Census Bureau data (2024)
To determine if a landlord should buy in ZIP 78063 (Pipe Creek, TX) for Section 8 purposes, follow this decision tree based on the provided data points.
1) Does FMR $1,650 (zip FY 2024) clear debt service on a $309,050 property?
No: The Fair Market Rent (FMR) of $1,650 is insufficient to cover the average debt service costs associated with a property priced at $309,050. Debt service typically includes mortgage payments, property taxes, insurance, and maintenance costs, which would likely exceed the FMR in this case. This makes the investment unprofitable under Section 8 guidelines.
Yes: Proceed to the next question. However, given the typical debt service costs, it's unlikely that $1,650 would be sufficient for a property valued at $309,050. This scenario is improbable without additional subsidies or very low-cost financing.
It Depends: Not applicable in this context. The answer will either be yes or no based on the financials.
2) Is market rent $1,044 (Census ACS) above, at, or below FMR?
Below: The market rent of $1,044 is below the FMR of $1,650. This indicates that the rental market in Pipe Creek, TX is less expensive than what the government deems fair for Section 8 tenants. Landlords might find it challenging to attract non-Section 8 tenants willing to pay the higher FMR rate.
Above: Not applicable since the market rent is below the FMR.
At: Not applicable since the market rent is below the FMR.
3) Are 7.7% renters + N/A-day DOM enough demand?
No: With only 7.7% of residents being renters and the lack of data on days on market (DOM), there is insufficient evidence to suggest a robust demand for rental properties in Pipe Creek, TX. This percentage is quite low compared to typical urban areas where rental demand is higher. Additionally, the absence of DOM data makes it difficult to assess how quickly rental units are occupied.
Yes: Not applicable given the low percentage of renters and the missing DOM data.
It Depends: While the 7.7% of renters does indicate some level of demand, it is not substantial. Without DOM data, we cannot fully evaluate the speed at which properties are rented out. If the landlord can secure a tenant base willing to pay the FMR rate, then the demand might be considered sufficient. Otherwise, the investment is risky due to the low rental population and unknown occupancy rates.
In conclusion, the data suggests that buying in ZIP 78063 for Section 8 purposes is not advisable. The FMR is unlikely to cover the debt service costs, the market rent is below the FMR, and the rental demand appears low and uncertain.
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.