Location: San Antonio-New Braunfels, TX | Metro: San Antonio-New Braunfels, TX HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $960 |
| 1 Bedroom | $1,040 |
| 2 Bedrooms | $1,250 |
| 3 Bedrooms | $1,620 |
| 4 Bedrooms | $1,880 |
| 5 Bedrooms | $2,181 |
| 6 Bedrooms | $2,443 |
| 7 Bedrooms | $2,638 |
| 8 Bedrooms | $2,770 |
U.S. Census Bureau data (2024)
The Section 8 program in ZIP 78161 has a significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for ZIP 78161 in fiscal year 2024 is set at $1360 per month. However, the market rent is currently not available (N/A), which indicates that landlords may be able to charge higher rents compared to the FMR.
In ZIP 78161, the median home value is $293,065, and the median income is $79,904. With only 0.0% of residents being renters, it suggests that homeownership is prevalent in this area. This context is crucial when evaluating the potential benefits and drawbacks of accepting Section 8 tenants.
If the market rent were to be higher than the FMR, landlords would need to consider the cost of housing voucher tenants below open-market rates. In such a scenario, landlords might experience a loss of potential revenue, as the difference between the FMR and the market rent could be substantial. For instance, if the market rent for a one-bedroom apartment is $1500, accepting a Section 8 tenant would mean losing $140 or approximately 9.3% of the market rent.
However, given the scarcity of rental properties in ZIP 78161, landlords who accept Section 8 tenants may still benefit from a steady stream of income guaranteed by the government. This makes the area a yield play, where the focus is on generating consistent cash flow rather than maximizing rental income.
To conclude, landlords in ZIP 78161 must weigh the gap between FMR and market rent against the stability provided by Section 8 vouchers. Given the limited rental market, voucher tenants can ensure a reliable source of income, even if it is slightly below open-market rates.
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.