Location: San Antonio-New Braunfels, TX | Metro: San Antonio-New Braunfels, TX HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,520 |
| 1 Bedroom | $1,650 |
| 2 Bedrooms | $1,990 |
| 3 Bedrooms | $2,570 |
| 4 Bedrooms | $2,990 |
| 5 Bedrooms | $3,468 |
| 6 Bedrooms | $3,884 |
| 7 Bedrooms | $4,195 |
| 8 Bedrooms | $4,405 |
U.S. Census Bureau data (2024)
To determine if you should buy in ZIP code 78152 for Section 8 purposes, follow this decision tree:
1) Does FMR $1620 (ZIP FY 2024) clear debt service on a $272,815 property?
No. The Fair Market Rent (FMR) of $1620 does not cover the debt service on a property valued at $272,815. Debt service typically includes principal and interest payments on a mortgage, property taxes, insurance, and maintenance costs. Given that the average monthly rent allowed under Section 8 is lower than the typical cost of maintaining such a property, purchasing in this area would likely result in financial losses unless you can significantly reduce your operating costs.
2) Is market rent $1,770 (ZORI) above, at, or below FMR?
Above. The Zillow Observed Rent Index (ZORI) of $1,770 indicates that the market rent is higher than the FMR of $1620. This means that outside of Section 8, you could potentially command higher rents. However, for Section 8 properties, you are limited to the FMR.
3) Are 16.6% renters + N/A-day DOM enough demand?
It Depends. With 16.6% of the population being renters, there is some demand for rental properties. However, the Days on Market (DOM) is listed as N/A, which suggests incomplete data or that the market turnover rate is not well-documented. In such cases, you must consider other factors like the vacancy rate and the competition in the rental market.
If the answer to question 1 is No, then buying a $272,815 property for Section 8 purposes is not advisable due to the high risk of financial loss. Even though the market rent is above the FMR, the limitation imposed by the Section 8 program means you cannot charge the higher market rate.
The answer to question 2 is Above, indicating that the ZIP code has a robust market for higher rents. However, this information alone does not justify a purchase for Section 8 tenants.
The answer to question 3 is It Depends. The 16.6% of renters suggests there is some demand, but without knowing the DOM or other key metrics, it's hard to gauge the overall demand for rental units. If the vacancy rate is low and competition for Section 8 tenants is minimal, then the demand might be sufficient. Otherwise, it could pose challenges in filling units consistently.
In conclusion, based on the provided data, purchasing a property in ZIP 78152 for Section 8 purposes is not recommended due to the inability of the FMR to cover the debt service on a $272,815 property. While the market rent is higher, the limitations of the Section 8 program mean you cannot capitalize on this advantage. Additionally, the lack of specific DOM data makes it difficult to assess the overall demand accurately.
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.