Location: San Antonio-New Braunfels, 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 | $1,360 |
| 1 Bedroom | $1,480 |
| 2 Bedrooms | $1,780 |
| 3 Bedrooms | $2,300 |
| 4 Bedrooms | $2,670 |
| 5 Bedrooms | $3,097 |
| 6 Bedrooms | $3,469 |
| 7 Bedrooms | $3,747 |
| 8 Bedrooms | $3,934 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,780 | $156,752 | 1.14% | B |
| 3BR | $2,300 | $223,980 | 1.03% | B |
| 4BR | $2,670 | $265,220 | 1.01% | B |
| 5BR | $3,097 | $318,729 | 0.97% | C |
U.S. Census Bureau data (2024)
Converse, Texas (ZIP 78109) functions as a suburban hub within the San Antonio-New Braunfels metro area, offering a blend of residential quiet and convenient access to urban amenities. The area is characterized by a growing family-oriented population, largely driven by its proximity to Joint Base San Antonio-Randolph, a major economic engine and employer that provides a steady stream of military personnel and defense contractors seeking local housing. This connection to the base instills a sense of stability and consistent demand in the local rental market, distinguishing it from more transient neighborhoods.
From a strictly numerical standpoint, Converse presents a compelling, though tight, margin for Section 8 operators. The HUD SAFMR for a 2-bedroom unit is set at $1,780, which sits slightly above the current Zillow market rent estimate of $1,689, yielding a potential premium of $91 per month. Investors looking for entry points will find the median 2BR sale price at $159,715 attractive against a median home value of $246,225. However, inventory turns slowly, with the median days on market sitting at 113 days, suggesting that while assets are reasonably priced, liquidity is not immediate.
The tenant pool here is robust, supported by a renter share of 25.1% and a solid median household income of $91,320. This income level suggests that even in a voucher context, tenants likely have supplementary income stability. The local school districts generally perform well, which appeals to families, and the major retail corridors along Loop 1604 provide essential amenities without requiring a commute into downtown San Antonio. These factors help maintain occupancy levels and reduce tenant turnover, which is critical for long-term holding strategies.
The Section 8 verdict for 78109 leans heavily toward stability and modest cashflow. The ability to command rents at or slightly above market rates via the HUD SAFMR creates a safety net against market dips. However, the 113-day days-on-market figure signals that investors must be patient with acquisitions. The strongest angle here is the combination of affordable entry prices relative to the metro area and the economic buffering provided by the military base, making Converse a defensive hold rather than a rapid-flip 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.