Section 8 Fair Market Rent (FMR) for ZIP 78216 - 2027

Investment Score for ZIP 78216

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	$1,140
1 Bedroom	$1,240
2 Bedrooms	$1,500
3 Bedrooms	$1,940
4 Bedrooms	$2,250
5 Bedrooms	$2,610
6 Bedrooms	$2,923
7 Bedrooms	$3,157
8 Bedrooms	$3,315

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	$1,240	$120,536	1.03%	B
2BR	$1,500	$171,524	0.87%	C
3BR	$1,940	$274,013	0.71%	D
4BR	$2,250	$428,474	0.53%	F
5BR	$2,610	$564,673	0.46%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 78216 (San Antonio, TX) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 78216 in San Antonio, Texas, provide insight into the rental market dynamics for Section 8 voucher holders. According to the 2026 FMR data, the rates for various bedroom sizes are as follows: - 0BR: $1130 - 1BR: $1230 - 2BR: $1490 (which is 30.2% of the median household income) - 3BR: $1910 - 4BR: $2230 These figures represent the maximum rent that landlords can charge to accept Section 8 vouchers. However, it is important to note that these rates are significantly lower than the actual market rents. For instance, the Zillow median price for a 2BR property is $173,243, which translates to a monthly mortgage payment of approximately $720 if financed at a 4.5% interest rate over 30 years. This calculation suggests that the price-to-FMR ratio of 9.7x is quite high, indicating that the actual market rents are much higher than what is covered by the FMR. This discrepancy creates a significant constraint for voucher holders, as they may struggle to find properties within their budget. Landlords might be hesitant to participate in the Section 8 program due to the lower rent ceilings compared to market rates, potentially leading to a limited supply of available units for voucher holders. #### Affordability & Renter Profile ZIP code 78216 has a population of 41,180, with 64.8% of residents being renters. The occupancy rate stands at 88.3%, suggesting a relatively tight rental market where demand is high relative to supply. Given that the median household income is $59,110, the affordability of housing becomes a critical issue for many residents, especially those relying on Section 8 vouchers. The FMR for a 2BR unit is $1490, which is only 30.2% of the median household income. This indicates that a substantial portion of the population may find it challenging to afford even the FMR rates without additional financial assistance. The high percentage of renters and the tight market conditions imply that there is a strong need for affordable housing options, but the current FMR levels may not be sufficient to meet this demand. #### Investor Angle From an investor perspective, the ZIP code 78216 presents both opportunities and challenges. The FMR rates are lower than market rents, which means that landlords participating in the Section 8 program may face reduced cash flow compared to non-program properties. However, the stability of government-backed payments can be attractive for certain investors. To determine whether this ZIP code is cash-flow positive at FMR, we need to consider the typical costs associated with owning and renting out a property. Assuming a 2BR property valued at $173,243 with a 20% down payment, the monthly mortgage payment would be around $720. Adding property taxes, insurance, maintenance, and other expenses, the total cost could range between $900 to $1200 per month. At the FMR rate of $1490, the net cash flow would be positive, although modest. However, the investment grade is likely to be lower due to the constraints imposed by the Section 8 program. These include potential delays in repairs, inspections, and the requirement to adhere to strict guidelines. Additionally, the limited pool of tenants who can afford the FMR rates may impact the speed of lease renewals and the overall occupancy rate. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should focus on smaller units such as 0BR and 1BR apartments. The FMR for these units is $1130 and $1230 respectively, which are closer to the actual market rents. This strategy can help maximize cash flow while still providing affordable housing options. 2. **Consider Mixed-Finance Properties**: Investors can explore properties that offer a mix of Section 8 and market-rate rentals. By having a portion of units dedicated to Section 8 tenants and others rented at market rates, landlords can balance the lower cash flow from Section 8 units with higher returns from market-rate units. 3. **Engage in Community Partnerships**: Collaborating with local community organizations and housing authorities can help landlords navigate the complexities of the Section 8 program. These partnerships can also provide access to additional resources and support for maintaining properties and managing tenants effectively. #### Bottom Line For Section 8-focused investors, the ZIP code 78216 presents a mixed picture. While there is a strong demand for affordable housing, the current FMR rates are significantly below market rents, creating challenges for both tenants and landlords. The recommendation for investors is to **Hold** on to existing Section 8 properties but be cautious about new investments unless they can leverage strategies like focusing on smaller units or mixed-finance models. The high price-to-FMR ratio suggests that the market is tight, and finding properties that are both affordable and profitable will require careful consideration and strategic planning.

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.