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 | $1,220 |
| 1 Bedroom | $1,330 |
| 2 Bedrooms | $1,600 |
| 3 Bedrooms | $2,070 |
| 4 Bedrooms | $2,400 |
| 5 Bedrooms | $2,784 |
| 6 Bedrooms | $3,118 |
| 7 Bedrooms | $3,367 |
| 8 Bedrooms | $3,535 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,330 | $200,513 | 0.66% | D |
| 2BR | $1,600 | $139,780 | 1.14% | B |
| 3BR | $2,070 | $171,342 | 1.21% | A |
U.S. Census Bureau data (2024)
The ZIP code 78204 in San Antonio, TX, presents a unique challenge for renters and landlords alike. The median household income in this area stands at $60,255, while the market rate for rent is $1,344 per month, according to ZORI (Zillow Observed Rent Index). This places significant financial strain on the majority of renters, who make up 54.7% of the 11,983 population.
To put this into perspective, a household earning the median income would need to allocate over 25% of their monthly earnings towards rent alone, assuming a 12-month year. This is well above the recommended threshold of 30%, indicating a notable affordability gap for residents.
The Federal Market Rent (FMR) for the zip code in fiscal year 2024 is set at $1,400, which is slightly higher than the market rate. However, this figure represents the standard payment amount for housing vouchers, meaning that voucher holders might have an easier time covering their rent compared to those paying out-of-pocket.
Given the high percentage of renters and the tight budget constraints many face, landlords must be prepared for stiff competition. Properties that offer a balance between cost and quality will attract tenants more effectively, especially those relying on housing vouchers.
The takeaway for landlords considering their strategy regarding voucher versus cash-paying tenants is clear. While cash-paying tenants may offer immediate financial ease, the reality of the affordability gap suggests that voucher-supported tenants could provide a more stable and consistent rental income. Moreover, the slight overlap between the FMR and the market rate indicates that voucher payments can cover most market rents, making them a viable option for landlords looking to secure long-term tenancy in ZIP 78204.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.