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 | $1,010 |
| 1 Bedroom | $1,100 |
| 2 Bedrooms | $1,330 |
| 3 Bedrooms | $1,720 |
| 4 Bedrooms | $2,000 |
| 5 Bedrooms | $2,320 |
| 6 Bedrooms | $2,598 |
| 7 Bedrooms | $2,806 |
| 8 Bedrooms | $2,946 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,330 | $118,101 | 1.13% | B |
| 3BR | $1,720 | $155,659 | 1.1% | B |
| 4BR | $2,000 | $199,089 | 1% | B |
U.S. Census Bureau data (2024)
ZIP 78220 in San Antonio, TX, is a key consideration for inclusion in a Section 8 portfolio strategy due to its characteristics as a cash-flow anchor. The Fair Market Rent (FMR) for the area in fiscal year 2024 is set at $1370, which is higher than the market rent of $1,329. This spread indicates that properties in this ZIP code can be rented at a slightly higher rate through Section 8 contracts compared to the general market, providing a stable source of income.
The median home value in ZIP 78220 is $150,069, making it an affordable area for both landlords and tenants. This affordability, combined with the FMR being above market rates, ensures a steady cash flow for landlords who participate in the Section 8 program. The program guarantees timely rental payments, reducing the risk of delinquency or vacancy, which are common concerns for landlords in areas with high renter shares and lower median incomes.
Furthermore, ZIP 78220 has a 0.3% price-cut share and N/A-day Days on Market (DOM), suggesting that property values are relatively stable and there is little need for landlords to reduce their asking prices to attract tenants. This stability is crucial for maintaining the cash flow benefits of a Section 8 portfolio, as significant fluctuations in property values could affect the overall financial performance of the investment.
A cash-flow anchor like ZIP 78220 is essential for any balanced Section 8 portfolio strategy. It provides a reliable base upon which other investments can be built, ensuring that even if some parts of the portfolio underperform, the anchor ZIPs will continue to generate consistent revenue. The 47.3% renter share and median income of $41,710 further support the case for ZIP 78220 as a cash-flow anchor, as these figures indicate a strong demand for rental housing and a population that is likely to benefit from subsidized housing options.
In conclusion, ZIP 78220 should be considered a cash-flow anchor within a Section 8 portfolio strategy. Its favorable spread between FMR and market rent, along with stable property values and a significant renter share, makes it an attractive option for landlords and small-portfolio investors seeking long-term, dependable returns.
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.