Location: Atascosa 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 | $1,030 |
| 2 Bedrooms | $1,240 |
| 3 Bedrooms | $1,600 |
| 4 Bedrooms | $1,860 |
| 5 Bedrooms | $2,158 |
| 6 Bedrooms | $2,417 |
| 7 Bedrooms | $2,610 |
| 8 Bedrooms | $2,741 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,240 | $203,646 | 0.61% | D |
| 3BR | $1,600 | $335,517 | 0.48% | F |
| 4BR | $1,860 | $469,195 | 0.4% | F |
U.S. Census Bureau data (2024)
To determine if a landlord should invest in ZIP 78114 (Floresville, TX) for Section 8 properties, follow these steps:
Step 1: Does the Fair Market Rent (FMR) of $1310 cover the debt service on a property valued at $365,944?
No. The FMR of $1310 is unlikely to cover the debt service on a property valued at $365,944. Debt service typically includes mortgage payments, property taxes, insurance, and maintenance costs. For a property of this value, monthly debt service would likely exceed $1310, making it unprofitable to rely solely on Section 8 tenants without additional income sources or subsidies.
Step 2: Is the market rent ($1,325 ZORI) above, at, or below the FMR?
At or Below FMR. The market rent of $1,325 is very close to the FMR of $1310. This suggests that landlords can charge slightly above the FMR, but there is little room for significant rent increases. It also indicates that the market rent is competitive with what Section 8 tenants can afford.
Step 3: Is the rental demand sufficient with 16.6% of residents being renters and an unspecified number of days on the market (DOM)?
It Depends. With 16.6% of residents renting, the demand for rental properties is moderate. However, the lack of data regarding the average days on the market (DOM) makes it difficult to assess how quickly properties might be occupied. A lower DOM would suggest strong demand, while a higher DOM would indicate weaker demand. Additionally, consider the proportion of residents eligible for Section 8 assistance; this will affect the likelihood of finding suitable tenants.
If the FMR does not cover the debt service, then purchasing a property in ZIP 78114 for Section 8 purposes is not advisable unless the landlord has other means to offset the shortfall. If the market rent is at or below the FMR, it implies that the rental market is tight and competition is high, which could make it challenging to find non-Section 8 tenants willing to pay the market rate. Lastly, the rental demand being moderate means that there are opportunities, but landlords must carefully evaluate their ability to manage properties and attract Section 8 tenants. In conclusion, ZIP 78114 presents a scenario where profitability is constrained by the FMR and market conditions, and success largely depends on the landlord's ability to navigate these challenges effectively.
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.