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 | $1,070 |
| 1 Bedroom | $1,160 |
| 2 Bedrooms | $1,400 |
| 3 Bedrooms | $1,810 |
| 4 Bedrooms | $2,100 |
| 5 Bedrooms | $2,436 |
| 6 Bedrooms | $2,728 |
| 7 Bedrooms | $2,946 |
| 8 Bedrooms | $3,093 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,400 | $250,022 | 0.56% | F |
| 3BR | $1,810 | $371,738 | 0.49% | F |
| 4BR | $2,100 | $608,439 | 0.35% | F |
| 5BR | $2,436 | $834,197 | 0.29% | F |
U.S. Census Bureau data (2024)
In ZIP code 78133, located in Canyon Lake, TX, the real estate landscape presents a nuanced scenario for both landlords and small-portfolio investors. The median home value stands at $380,476, indicating a stable market where property values have remained consistent. This stability is further supported by the fact that only 0.2% of listings have been reduced in price, suggesting that sellers are maintaining their asking prices, which implies a strong sense of confidence in the local housing market.
The median days on market (DOM) of 129 days reveals a slightly slower sales pace compared to more active markets. However, this figure does not necessarily indicate a weak market but rather a steady one where properties take a reasonable amount of time to find the right buyer. The combination of a high median home value, low percentage of price reductions, and moderate DOM suggests that landlords and investors in this area retain significant pricing power over the next 12-24 months.
On the rental side, the Fair Market Rent (FMR) for ZIP 78133 in fiscal year 2024 is projected to be $1,450, while the Zillow Observed Rent Index (ZORI) currently sits at $1,680. This discrepancy highlights an opportunity for landlords to maintain higher rents, above the government's benchmark, without risking vacancy rates due to the market's ability to support these levels. Investors can leverage this gap to achieve better cash flow returns on their properties.
For long-term investors, the appreciation thesis in ZIP 78133 is grounded in the stability of the housing market and the potential for rental income growth. While the median home value has not shown dramatic increases, the consistent market conditions and the current strength of the rental market suggest that properties will likely hold their value well. Moreover, the ability to command rents above the FMR indicates that rental income could continue to grow, providing a solid foundation for long-term investment strategies.
The setup implied by the data points towards a balanced market with room for cautious optimism. Landlords and small-portfolio investors should focus on maintaining quality properties to ensure they remain competitive in both the sales and rental markets. With a median home value of $380,476 and a median DOM of 129 days, there is a clear indication that the market supports holding onto properties for long-term gains, especially given the favorable rental dynamics.
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.