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 | $910 |
| 1 Bedroom | $990 |
| 2 Bedrooms | $1,190 |
| 3 Bedrooms | $1,540 |
| 4 Bedrooms | $1,790 |
| 5 Bedrooms | $2,076 |
| 6 Bedrooms | $2,325 |
| 7 Bedrooms | $2,511 |
| 8 Bedrooms | $2,637 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,190 | $111,095 | 1.07% | B |
| 3BR | $1,540 | $133,554 | 1.15% | B |
| 4BR | $1,790 | $168,025 | 1.07% | B |
U.S. Census Bureau data (2024)
The classification of ZIP code 78225 in San Antonio, TX, hinges on its economic indicators and rental market dynamics. The Fair Market Rent (FMR) for the fiscal year 2024 is set at $1,180. This figure represents the maximum amount that a household receiving federal assistance can pay for rent in this area. In contrast, the market rent stands at $1,320, indicating a premium over the FMR that private landlords might charge.
When considering the yield potential, the median home value of $126,113 is a critical metric. With a market rent of $1,320, landlords could potentially achieve a strong yield if they can acquire properties at or below the median home value. However, the yield is also influenced by the percentage of renters, which is 35.2%. This suggests a moderate level of demand for rental properties but not an overwhelming one.
The stability of the market is partially gauged by the average income level and the percentage of renters. The average income in ZIP 78225 is $46,955, which is lower than the national average. This could indicate a higher risk of default among tenants, particularly if their income does not cover the cost of living in the area adequately. The lack of data on days on market (DOM) makes it challenging to assess how quickly properties can be rented out, which is another key factor in market stability.
Based on these figures, ZIP 78225 leans towards being a steady-cashflow zone. While the yield is decent due to the relatively low home values and the possibility of charging above the FMR, the lower average income and moderate renter population suggest a need for careful tenant screening and management practices to ensure consistent cash flow. Landlords should expect a balance between profit and the necessity to maintain stable occupancy rates.
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.