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 | $1,080 |
| 1 Bedroom | $1,170 |
| 2 Bedrooms | $1,410 |
| 3 Bedrooms | $1,820 |
| 4 Bedrooms | $2,120 |
| 5 Bedrooms | $2,459 |
| 6 Bedrooms | $2,754 |
| 7 Bedrooms | $2,974 |
| 8 Bedrooms | $3,123 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,170 | $200,308 | 0.58% | F |
| 2BR | $1,410 | $125,785 | 1.12% | B |
| 3BR | $1,820 | $178,537 | 1.02% | B |
| 4BR | $2,120 | $211,195 | 1% | B |
U.S. Census Bureau data (2024)
The analysis of ZIP code 78202 in San Antonio, TX, reveals several key points regarding its suitability for Section 8 real-estate investment.
The rent math does not align favorably with the current financial landscape. The Fair Market Rent (FMR) for the area, set at $1240 for fiscal year 2024, falls short of the market rent indicated by the Zillow Observed Rent Index (ZORI), which stands at $1,325. This discrepancy suggests that landlords might struggle to cover operational costs if they solely rely on the Section 8 payment standard.
Acquisition of properties in this ZIP code is relatively affordable. With a median home value of $155,035, potential investors can enter the market without needing substantial capital. However, the lack of available data on days on market (DOM) and the low percentage of homes that have experienced price cuts (0.3%) indicate that the housing market is stable but may not offer the rapid turnover or significant discounts typically sought by investors.
Tenant demand in ZIP 78202 is robust. The population of 10,224 residents, with a renter share of 44.2%, presents a considerable pool of potential tenants. This high proportion of renters supports the viability of rental properties, including those participating in the Section 8 program.
In conclusion, while the rent math does not currently work in favor of Section 8 landlords due to the gap between FMR and market rent, the affordability of property acquisition and strong tenant demand make ZIP 78202 an attractive option for small-portfolio investors. The stable housing market ensures that investments are secure, though profitability may be constrained by the lower FMR compared to market rates. For those willing to accept slightly lower returns in exchange for guaranteed tenants, this ZIP code offers a solid foundation for building a sustainable rental portfolio.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.