Location: Gonzales County, TX | Metro: San Antonio-New Braunfels, TX HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $720 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $1,020 |
| 3 Bedrooms | $1,400 |
| 4 Bedrooms | $1,480 |
| 5 Bedrooms | $1,717 |
| 6 Bedrooms | $1,923 |
| 7 Bedrooms | $2,077 |
| 8 Bedrooms | $2,181 |
U.S. Census Bureau data (2024)
The Section 8 housing analysis for ZIP code 78140 reveals a significant gap between the Fair Market Rent (FMR) set at $1160 for fiscal year 2024 and the actual market rent reported at $845 based on the latest Census American Community Survey (ACS) data. This discrepancy amounts to a difference of $315 per month, or approximately 27%, indicating that the FMR is higher than the current market rent.
In this scenario, where the FMR exceeds the market rent, landlords can leverage Section 8 vouchers to enhance their rental yields. The voucher program guarantees a minimum rental rate that is closer to the FMR, providing a financial buffer against the lower market rents. For instance, if a landlord sets a rental price of $845, they would receive an additional $315 from the voucher program, effectively bringing their rental income up to $1160. This makes properties in ZIP 78140 particularly attractive for landlords seeking to maximize their returns through the Section 8 program.
The context of ZIP 78140 includes a 26.5% share of renters among all households, a median home value of $201,014, and a median household income of $50,250. These figures suggest that while there is a substantial portion of the population renting, the area also has a relatively high median home value, which could indicate a mix of middle to upper-middle-class residents alongside those who rely on government assistance for housing. The higher FMR compared to the market rent means that landlords accepting voucher tenants will be receiving more than what they could get from open-market renters, thus offsetting the potential costs associated with managing voucher properties, such as stricter rent control regulations and inspections.
However, landlords should consider the implications of this yield play. While the guaranteed higher rental rate from the voucher program can improve cash flow, it also ties them into a federal program with specific requirements and limitations. For example, landlords must adhere to the Housing Quality Standards (HQS) and comply with regular inspections. Additionally, voucher holders might have different needs and expectations, potentially requiring more maintenance and support. Despite these considerations, the financial benefits of accepting Section 8 vouchers in ZIP 78140 are clear, given the favorable gap between FMR and market rent.
Data Sources: FMR data from HUD (2027). 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.