Section 8 Fair Market Rent (FMR) for ZIP 78131 - 2027
Location: San Antonio-New Braunfels, TX | Metro: San Antonio-New Braunfels, TX HUD Metro FMR Area
FY 2027 Fair Market Rent Rates
| Unit Size |
Monthly FMR |
| Studio | $1,260 |
| 1 Bedroom | $1,370 |
| 2 Bedrooms | $1,650 |
| 3 Bedrooms | $2,130 |
| 4 Bedrooms | $2,480 |
| 5 Bedrooms | $2,877 |
| 6 Bedrooms | $3,222 |
| 7 Bedrooms | $3,480 |
| 8 Bedrooms | $3,654 |
To determine if a landlord should invest in ZIP 78131 (Unknown, TX) for Section 8 properties, follow this decision tree:
- Does the Fair Market Rent (FMR) of $1630 cover debt service on a property?
- If yes: Proceed to the next question.
- If no: Do not buy here for Section 8 purposes. The FMR does not sufficiently cover the costs associated with owning a property.
- Is the market rent above, at, or below the FMR?
- If above: The area is attractive for both Section 8 and market-rate tenants, increasing potential revenue. Continue to the next step.
- If at: There is parity between market rates and FMR, which means that Section 8 can be competitive but offers limited premium over market rates. It depends on other factors such as tenant demand and property management costs.
- If below: The market rate is lower than the FMR, making Section 8 less attractive as it doesn't offer a premium over what the market would pay. Consider other investment options.
- Are the tenant demand and days on market sufficient?
- If the percentage of renters is high and days on market (DOM) is low: There is strong demand for rental properties, making ZIP 78131 a good investment for Section 8. High demand suggests a stable income stream.
- If the percentage of renters is moderate and DOM is average: Demand is present but not overwhelming. It depends on how you weigh the balance between FMR coverage and tenant demand.
- If the percentage of renters is low and DOM is high: Tenant demand is insufficient, leading to prolonged vacancies and reduced profitability. Do not invest in this ZIP code for Section 8 unless there are other compelling reasons.
Note: Due to the lack of specific data points for market rent, percentage of renters, and DOM, these decisions are based on hypothetical scenarios. For a precise analysis, actual figures must be obtained and considered.
Data Sources: FMR data from HUD (2027).
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.