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 | $780 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $1,020 |
| 3 Bedrooms | $1,320 |
| 4 Bedrooms | $1,530 |
| 5 Bedrooms | $1,775 |
| 6 Bedrooms | $1,988 |
| 7 Bedrooms | $2,147 |
| 8 Bedrooms | $2,254 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,020 | $152,839 | 0.67% | D |
| 3BR | $1,320 | $194,213 | 0.68% | D |
U.S. Census Bureau data (2024)
The classification of ZIP 78208 in San Antonio, TX, reveals a market that offers a balance between yield and stability. The Fair Market Rent (FMR) for ZIP 78208 in fiscal year 2024 is set at $1,070, which is notably lower than the market rent of $1,562. This discrepancy suggests a potential for higher yields if landlords can secure tenants through the Section 8 program.
However, the median home value of $174,178 in the area indicates a relatively stable housing market. Coupled with a significant portion of renters—67.5%—this ZIP code presents a reliable demand for rental properties. Despite the absence of data on days on market (DOM), the high percentage of renters points towards a steady cash flow for landlords who manage their properties effectively.
The average income of $26,595 provides insight into the economic conditions of the area. While this figure is lower compared to national averages, it aligns well with the FMR and supports the idea that there is a viable tenant base for Section 8 properties. Landlords should be aware that the income level might affect the type of properties that can be rented profitably under the Section 8 program.
To summarize, ZIP 78208 leans towards being a steady-cashflow zone rather than a high-yield/low-stability flip-style market. The key figures supporting this conclusion are the FMR of $1,070 versus the market rent of $1,562, the median home value of $174,178, and the substantial 67.5% of residents who are renters. These factors indicate a stable rental environment with moderate potential for yield improvement through Section 8 participation.
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.