Location: San Antonio-New Braunfels, TX | Metro: San Antonio-New Braunfels, TX HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $960 |
| 1 Bedroom | $1,050 |
| 2 Bedrooms | $1,260 |
| 3 Bedrooms | $1,630 |
| 4 Bedrooms | $1,890 |
| 5 Bedrooms | $2,192 |
| 6 Bedrooms | $2,455 |
| 7 Bedrooms | $2,651 |
| 8 Bedrooms | $2,784 |
U.S. Census Bureau data (2024)
To determine if you should buy in ZIP code 78155 (Seguin, TX) for Section 8 investment, follow this decision tree:
1) Does FMR $1310 (zip FY 2024) clear debt service on a $272,051 property?
No. The Fair Market Rent (FMR) of $1310 does not cover the debt service for a property priced at $272,051. Debt service typically includes mortgage payments, property taxes, insurance, and maintenance costs. Given the median home price and average rental income, the FMR is insufficient to meet these financial obligations. This makes Seguin less attractive for landlords relying solely on Section 8 vouchers.
2) Is market rent $1,524 (ZORI) above, at, or below FMR?
Above FMR. The Zillow Rent Index (ZORI) of $1,524 exceeds the FMR of $1310. This indicates that there is potential to earn higher rents from non-Section 8 tenants. However, if your investment strategy strictly adheres to Section 8 tenants, the FMR remains the critical figure.
3) Are 27.5% renters + 56-day DOM enough demand?
It depends. With 27.5% of the population being renters and an average days on market (DOM) of 56 days, the rental market has moderate demand. A DOM of 56 suggests that properties are generally occupied within two months, which is reasonable but not indicative of high demand. If you decide to target non-Section 8 tenants, the ZORI of $1,524 could provide better returns. However, if you're focused exclusively on Section 8, the FMR of $1310 is insufficient to clear the debt service on a $272,051 property.
In conclusion, ZIP 78155 presents a mixed picture for Section 8 investments. While the market rent is higher than the FMR, making it potentially viable for non-Section 8 tenants, the FMR alone does not clear the debt service on a property of this value. Therefore, landlords must weigh their tenant preferences and financial goals carefully before investing.
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.