Section 8 Fair Market Rent (FMR) for ZIP 78228 - 2027

Investment Score for ZIP 78228

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	$950
1 Bedroom	$1,030
2 Bedrooms	$1,240
3 Bedrooms	$1,600
4 Bedrooms	$1,860
5 Bedrooms	$2,158
6 Bedrooms	$2,417
7 Bedrooms	$2,610
8 Bedrooms	$2,741

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,240	$130,089	0.95%	C
3BR	$1,600	$176,041	0.91%	C
4BR	$1,860	$215,810	0.86%	C
5BR	$2,158	$271,730	0.79%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 78228 (San Antonio, TX) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 78228 in San Antonio, TX, for 2026 is set at $1220 for a two-bedroom unit. This figure represents 27.6% of the median household income in the area, which stands at $52,976. The FMR is designed to reflect the average rent that voucher holders can afford, but it often falls short of actual rental prices. According to Zillow, the median price for a two-bedroom home in this ZIP code is $128,855, which translates into a price-to-FMR ratio of 8.8x. This suggests that actual rental prices are significantly higher than the FMR, creating a challenging environment for voucher holders who may struggle to find affordable housing options within their budget. #### Affordability & Renter Profile ZIP code 78228 has a population of 56,165, with 40.7% of residents being renters. The occupancy rate is high at 90.4%, indicating a relatively tight rental market where demand is strong relative to supply. Given the median household income of $52,976, many renters are likely to be low-income families or individuals who rely on assistance programs like Section 8 vouchers to manage their housing costs. However, the significant gap between the Zillow median price and the FMR suggests that affordability remains a critical issue for these renters. The high occupancy rate and substantial proportion of renters indicate that there is a robust demand for rental properties, but the limited availability of units that fit within the FMR guidelines could make it difficult for voucher holders to secure housing. #### Investor Angle From an investor’s perspective, the ZIP code 78228 presents both opportunities and challenges. The high occupancy rate and significant demand for rental properties suggest that there is potential for positive cash flow if the investor can acquire properties at or below the FMR levels. However, given the current median rental prices, achieving this may be difficult without significant renovations or strategic acquisitions. The price-to-FMR ratio of 8.8x indicates that the typical rental property in this ZIP code is priced well above what voucher holders can afford, making it essential for investors to focus on properties that can be rented at or near the FMR. The investment grade for this ZIP code would be considered moderate to high risk due to the high cost of acquiring rental properties and the potential difficulty in finding tenants who can pay the full FMR. Investors should carefully consider the local rental market dynamics and the competition for affordable housing units before making any investment decisions. #### Specific Actionable Insights 1. **Target Affordable Housing Units**: Investors should prioritize properties that can be rented at or near the FMR levels. For example, focusing on two-bedroom units priced around $1220 would increase the likelihood of attracting voucher holders. This strategy requires either purchasing properties at a discount or performing cost-effective renovations to bring them up to standard while keeping the rental price within the FMR range. 2. **Utilize Local Programs**: Engage with local government programs and initiatives aimed at increasing affordable housing stock. These programs might offer incentives such as tax breaks or subsidies for landlords who agree to rent to voucher holders. Understanding and leveraging these resources can help offset some of the financial risks associated with renting at FMR levels. 3. **Diversify Tenant Base**: While targeting Section 8 voucher holders, diversifying the tenant base to include other low-income renters who do not necessarily require vouchers can help stabilize cash flow. This approach allows investors to benefit from the strong rental demand while mitigating the risk of relying solely on voucher holders. #### Bottom Line Given the high occupancy rate and significant demand for rental properties, ZIP code 78228 offers a promising market for investors. However, the challenge lies in finding properties that can be rented at or near the FMR levels. Therefore, the recommendation for Section 8-focused investors is to **Hold**. Investors should maintain a cautious approach, carefully selecting properties that align with the FMR guidelines and considering strategic partnerships with local affordable housing programs to ensure a stable and profitable investment. --- This analysis provides a comprehensive overview of the rental market dynamics in ZIP code 78228, highlighting key considerations for Section 8 voucher holders and investors alike. By focusing on affordable housing units and diversifying the tenant base, investors can navigate the challenges and capitalize on the opportunities presented by this market.

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.