Section 8 Fair Market Rent (FMR) for ZIP 78132 - 2027

Investment Score for ZIP 78132

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,310
1 Bedroom	$1,430
2 Bedrooms	$1,720
3 Bedrooms	$2,230
4 Bedrooms	$2,580
5 Bedrooms	$2,993
6 Bedrooms	$3,352
7 Bedrooms	$3,620
8 Bedrooms	$3,801

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,720	$370,977	0.46%	F
3BR	$2,230	$457,632	0.49%	F
4BR	$2,580	$580,125	0.44%	F
5BR	$2,993	$720,922	0.42%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 78132 (New Braunfels, TX) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 78132 in New Braunfels, TX, is set by HUD for 2026. The FMRs are as follows: - 0BR: $1250 - 1BR: $1370 - 2BR: $1660 (which is 14.7% of the median household income) - 3BR: $2130 - 4BR: $2480 To understand how these FMRs compare to actual rents, we can look at the Zillow median price for a 2BR unit, which is $375,299. This gives us a price-to-FMR ratio of 18.8x, indicating that the actual purchase price of a 2BR property is significantly higher than what a Section 8 voucher would cover. For instance, a 2BR unit priced at $375,299 would be nearly 225 times the FMR rental amount of $1660 per month. This high ratio suggests that the actual rental market in 78132 is likely much higher than the FMRs. Therefore, voucher holders face significant constraints, as they might struggle to find units that rent below or even close to the FMRs. Additionally, landlords who accept Section 8 vouchers may have limited options for covering their costs, especially if they are renting out properties they own or manage. #### Affordability & Renter Profile ZIP code 78132 has a population of 40,953, with a median household income of $135,315. Only 12.5% of the residents are renters, indicating a relatively low demand for rental housing compared to owner-occupied homes. The occupancy rate stands at 95.5%, suggesting that the market is quite tight, with very few vacant units available. Given the high median household income, most residents can afford to buy rather than rent. However, those who do rent are likely to be either lower-income individuals or families who rely on assistance programs like Section 8. The affordability of rental housing is a critical issue, as the FMRs represent only a small fraction of the median income. A 2BR unit at $1660 per month is just 14.7% of the median household income, making it a relatively affordable option for those who qualify for assistance. However, the actual rental market is likely much higher due to the tight supply and high demand for housing in general. #### Investor Angle From an investor’s perspective, the ZIP code 78132 presents a challenging environment for cash flow-positive investments at the FMR levels. Given the high price-to-FMR ratio of 18.8x, it is unlikely that an investor could achieve positive cash flow by renting out a property at the FMR rates. For example, a 2BR property purchased at the median price of $375,299 would require a monthly mortgage payment well above the $1660 FMR. Even with conservative estimates, the mortgage payment alone would exceed the FMR, leaving little room for other expenses such as maintenance, utilities, and property management. The investment grade for this ZIP code is low for Section 8-focused investors. The high purchase prices and tight rental market make it difficult to find properties that can be rented profitably at the FMR rates. Furthermore, the limited number of renters (only 12.5% of the population) means that there is a smaller pool of potential tenants who can use Section 8 vouchers. #### Specific Actionable Insights 1. **Target Lower-Rent Units**: Investors should focus on acquiring properties with fewer bedrooms, such as 0BR or 1BR units, where the FMRs are lower ($1250 and $1370, respectively). These units are more likely to be rented at or near the FMR, providing better cash flow opportunities. 2. **Consider Non-Section 8 Tenants**: Given the high median household income and the tight rental market, investors might want to consider targeting non-Section 8 tenants. While this requires a higher rent, the demand for rental housing is still present, and the higher rents can help offset the high purchase prices. 3. **Evaluate Property Management Costs**: Since the actual rental market is much higher than the FMR, investors should carefully evaluate the total cost of ownership, including mortgage payments, property taxes, insurance, and maintenance. These costs need to be balanced against the rental income to ensure profitability. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 78132 is to **skip** this market. The high price-to-FMR ratio and the limited number of renters make it difficult to find properties that can be rented profitably at the FMR rates. Instead, investors might want to explore markets with higher renter populations and lower price-to-FMR ratios for better cash flow and investment returns.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.