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 | $1,150 |
| 1 Bedroom | $1,250 |
| 2 Bedrooms | $1,510 |
| 3 Bedrooms | $1,950 |
| 4 Bedrooms | $2,270 |
| 5 Bedrooms | $2,633 |
| 6 Bedrooms | $2,949 |
| 7 Bedrooms | $3,185 |
| 8 Bedrooms | $3,344 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,250 | $100,014 | 1.25% | A |
| 2BR | $1,510 | $147,808 | 1.02% | B |
| 3BR | $1,950 | $240,072 | 0.81% | C |
| 4BR | $2,270 | $354,745 | 0.64% | D |
U.S. Census Bureau data (2024)
The classification of ZIP code 78229 in San Antonio, TX, hinges on analyzing both its yield potential and stability. Yield is measured by comparing the Fair Market Rent (FMR) of $1,530 for fiscal year 2024 against the market rent of $1,098. Stability is gauged through the percentage of renters at 86.2%, median income at $46,574, and the home value at $190,470.
The FMR being significantly higher than the market rent indicates a strong opportunity for landlords to increase rental income, potentially by up to $432 per month. This suggests a high-yield environment where properties can be rented out at above-market rates, taking advantage of the federally determined fair rent levels.
Stability in this context is influenced by the high percentage of renters and the relatively low median income. With 86.2% of residents renting, there is a substantial demand for rental housing, which supports the idea of a steady cash flow. However, the median income of $46,574 might pose challenges for tenants to afford the higher rents, especially if they are close to or exceed the FMR. This could imply some level of risk, as tenants might struggle to maintain consistent payments, affecting the overall stability of the market.
To determine whether ZIP 78229 is a high-yield/low-stability flip-style market or a steady-cashflow zone, we must consider these factors together. The disparity between the FMR and market rent points towards a high-yield market, but the median income figure introduces an element of instability due to the potential affordability issues for tenants.
Given the data, ZIP 78229 leans towards being a high-yield market with moderate stability. While the opportunity to raise rents is clear, landlords must be cautious about setting rates too high, which could lead to vacancy issues. A balanced approach that takes advantage of the yield while maintaining reasonable rents based on local incomes would likely result in a more sustainable investment strategy.
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.