Section 8 Fair Market Rent (FMR) for ZIP 78209 - 2027

Investment Score for ZIP 78209

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,240
1 Bedroom	$1,340
2 Bedrooms	$1,620
3 Bedrooms	$2,100
4 Bedrooms	$2,430
5 Bedrooms	$2,819
6 Bedrooms	$3,157
7 Bedrooms	$3,410
8 Bedrooms	$3,581

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,340	$121,696	1.1%	B
2BR	$1,620	$268,751	0.6%	D
3BR	$2,100	$491,833	0.43%	F
4BR	$2,430	$843,708	0.29%	F
5BR	$2,819	$1,359,151	0.21%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 78209 (San Antonio, TX) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 78209 is set by HUD for 2026, with the following rates: - 0BR: $1220 - 1BR: $1340 - 2BR: $1620 - 3BR: $2080 - 4BR: $2420 Comparing these figures to the actual rental market, we find that the Zillow median price for a 2BR property is $267,977. This suggests that the rental market is significantly higher than the FMR, with a price-to-FMR ratio of 13.8x. For instance, a 2BR unit priced at $1620 per month would be considered affordable under the FMR guidelines, but the average price for such units is likely much higher given the price-to-FMR ratio. This disparity creates significant constraints for voucher holders. The maximum rent allowed under a Section 8 voucher is typically the FMR, meaning that tenants with vouchers will struggle to find units that fit within their budget. Landlords who accept Section 8 vouchers may have limited options for raising rents due to the FMR caps, which could impact their profitability. #### Affordability & Renter Profile ZIP code 78209 has a population of 43,400, with 50% of residents being renters. The median household income is $86,514, indicating a relatively affluent area. However, the occupancy rate stands at 88.3%, suggesting that while there is demand, it is not excessively high, and there might be some room for additional supply without causing significant over-supply. Given that 2BR units represent 22.5% of the median income, it implies that a substantial portion of the renter population can afford to live in this area without assistance. However, the high price-to-FMR ratio indicates that many lower-income renters may face challenges finding affordable housing. The tight market conditions mean that landlords have a fair degree of pricing power, but they must balance this against the availability of Section 8 vouchers, which can provide a steady stream of tenants. #### Investor Angle From an investor perspective, the ZIP code 78209 presents both opportunities and challenges. Given the high price-to-FMR ratio, properties rented out under Section 8 vouchers may not generate strong cash flow compared to market-rate rentals. However, the stability of tenant payments and the guaranteed occupancy provided by the Section 8 program can be attractive to certain investors. To determine if the ZIP code is cash-flow positive at FMR, we need to consider the typical expenses associated with renting out a property. Assuming a conservative estimate of 50% of the FMR for operating costs (including maintenance, utilities, insurance, and property taxes), the net income for a 2BR unit would be approximately $810 per month ($1620 - 50% of $1620). This is still a modest amount, especially when considering the initial investment required to purchase a property in this area. The investment grade for this ZIP code would likely be moderate to low, given the high cost of entry and the relatively low rental income compared to market rates. Investors should carefully weigh the benefits of stable, government-backed tenants against the potential for lower returns. #### Specific Actionable Insights 1. **Target Lower-Rent Units**: Focus on acquiring 0BR and 1BR units, which have FMRs of $1220 and $1340 respectively. These units are more likely to attract voucher holders and may offer better cash flow relative to the purchase price. 2. **Consider Property Location**: Given the high price-to-FMR ratio, properties located in areas with higher concentrations of voucher holders or those near public transportation hubs may have a better chance of attracting tenants. This can help mitigate the risk of vacancy and ensure steady income. 3. **Evaluate Operating Costs**: Carefully assess the operating costs of any potential investment property. If operating costs exceed 50% of the FMR, the property may not be a viable investment under the Section 8 program. Ensure that the property is well-maintained and that utility costs are reasonable to maximize profitability. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 78209 is to **Hold**. While the area offers opportunities for stable, long-term tenancy, the high price-to-FMR ratio means that cash flow will likely be modest. Investors should focus on smaller units and properties with manageable operating costs to ensure viability. The tight market conditions suggest that there is demand for affordable housing, but the overall investment grade remains moderate due to the financial constraints imposed by the FMR limits. --- This analysis provides a detailed look into the dynamics of the rental market in ZIP code 78209, focusing specifically on how Section 8 vouchers interact with the local real estate landscape. By understanding the constraints and opportunities, investors can make informed decisions about whether to enter or hold investments in this area.

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.