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 | $1,040 |
| 1 Bedroom | $1,130 |
| 2 Bedrooms | $1,360 |
| 3 Bedrooms | $1,760 |
| 4 Bedrooms | $2,040 |
| 5 Bedrooms | $2,366 |
| 6 Bedrooms | $2,650 |
| 7 Bedrooms | $2,862 |
| 8 Bedrooms | $3,005 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,760 | $452,613 | 0.39% | F |
| 4BR | $2,040 | $768,872 | 0.27% | F |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 78123 in fiscal year 2024 is set at $1240. This figure represents the payment standard used by the U.S. Department of Housing and Urban Development (HUD) for the Section 8 housing voucher program. It does not represent the actual rent a tenant will pay; rather, it's the maximum amount that HUD will reimburse landlords for renting out a unit under the program.
To understand how this affects your rental income, consider that the FMR is not reflective of the rent you can charge. Landlords typically set their own rents, which must be reasonable and comparable to similar units in the area. The FMR simply caps the amount that can be subsidized by the government. If your rental price exceeds $1240, the tenant will have to cover the difference from their own funds.
In ZIP code 78123, the local median rent is currently not available. However, the 10.7% renter share indicates a significant portion of the population relies on rental housing, suggesting a steady demand for properties. With such a high percentage of renters, there is a good chance that tenants seeking Section 8 vouchers will be interested in your property.
The average acquisition cost for a rental property in this ZIP code is $424,337. This means that if you're looking to purchase a property specifically for Section 8 rentals, you should budget around this amount. Keep in mind that this is an average, and individual property costs can vary widely based on size, condition, and location.
Before proceeding with your first Section 8 rental, it's crucial to verify that your property meets all the required quality standards. HUD mandates that all Section 8 properties must pass a Housing Quality Standards (HQS) inspection to ensure they are safe, decent, and sanitary. This inspection is essential to secure approval for participation in the program.
In summary, while the FMR of $1240 sets a limit on government reimbursement, it does not dictate the rent you can charge. The strong demand indicated by the 10.7% renter share, combined with the substantial investment needed for an acquisition cost of $424,337, makes Section 8 rentals a viable option for landlords in ZIP 78123. Ensure your property meets HQS requirements to avoid delays and complications.
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.