Section 8 Fair Market Rent (FMR) for ZIP 78230 - 2027

Investment Score for ZIP 78230

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	$1,180
1 Bedroom	$1,290
2 Bedrooms	$1,550
3 Bedrooms	$2,010
4 Bedrooms	$2,330
5 Bedrooms	$2,703
6 Bedrooms	$3,027
7 Bedrooms	$3,269
8 Bedrooms	$3,432

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
1BR	$1,290	$115,436	1.12%	B
2BR	$1,550	$207,571	0.75%	D
3BR	$2,010	$316,462	0.64%	D
4BR	$2,330	$430,477	0.54%	F
5BR	$2,703	$633,904	0.43%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 78230 (San Antonio, TX) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 78230 in San Antonio, Texas, is set by HUD for 2026. For a two-bedroom unit, the FMR is $1530 per month. This amount represents 25.0% of the median household income of $73,529, indicating that it is a reasonable rent level for the area. However, the actual rental prices in the market are significantly higher. The Zillow median price for a two-bedroom unit is $203,904, which translates to a monthly rent of approximately $1699 based on typical mortgage payments (assuming a 4.5% interest rate and a 20-year amortization period). This results in a price-to-FMR ratio of 11.1x, meaning that the actual market rent is nearly 11 times the FMR for a two-bedroom unit. This high ratio suggests that Section 8 voucher holders face significant constraints in finding affordable housing. While the voucher covers up to $1530 per month, landlords may be hesitant to accept vouchers due to the higher market rent levels. Consequently, voucher holders might struggle to find units within their budget, leading to potential housing shortages and increased competition among renters. #### Affordability & Renter Profile ZIP code 78230 has a population of 41,387, with 51.0% of residents being renters. This indicates a strong demand for rental properties in the area. The occupancy rate stands at 90.0%, suggesting that the market is relatively tight and there is little excess supply. Given the median household income of $73,529, many residents could find it challenging to afford market-rate rents, especially for larger units like three-bedroom ($1960) and four-bedroom ($2290) apartments. The high proportion of renters and the tight occupancy rate imply that there is a significant need for affordable housing options. However, the market dynamics suggest that the majority of rental units are priced above the FMR, making it difficult for low-income families to secure housing without financial assistance. This creates a scenario where the demand for affordable units is high, but the supply is limited, potentially exacerbating housing challenges for lower-income residents. #### Investor Angle From an investor perspective, the ZIP code 78230 presents both opportunities and challenges. The FMR for a two-bedroom unit is $1530, which is significantly below the market rent of around $1699. However, the high price-to-FMR ratio means that landlords who accept Section 8 vouchers will likely have lower cash flow compared to those who can charge market rates. To determine the investment grade, we must consider the potential for vacancy and the overall demand for rental units. With a 90.0% occupancy rate, the risk of vacancy is relatively low, but the challenge lies in attracting tenants who can pay the full market rent. If an investor focuses solely on Section 8 vouchers, they should expect lower cash flows due to the disparity between FMR and market rent. Conversely, if they can attract market-rate tenants, the investment would likely be more profitable. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should consider focusing on smaller units such as one-bedroom apartments, which have an FMR of $1260. These units are more likely to be rented out at or near the FMR, providing a better balance between affordability and profitability. Additionally, the demand for smaller units is often higher in areas with a significant number of single individuals or couples. 2. **Diversify Tenant Mix**: To mitigate the risk of lower cash flow associated with Section 8 vouchers, investors should aim to diversify their tenant mix. By offering a combination of units to both voucher holders and market-rate tenants, landlords can achieve a more stable cash flow. For instance, a property with a mix of one-bedroom units (attracting market-rate tenants) and two-bedroom units (targeting voucher holders) could provide a balanced approach to maximizing returns while ensuring that the property remains occupied. #### Bottom Line For Section 8-focused investors, ZIP code 78230 presents a mixed picture. While there is a strong demand for rental units, the high price-to-FMR ratio suggests that cash flow will be lower compared to market-rate rentals. Therefore, the recommendation for investors is to **Hold**. They should carefully evaluate their portfolio mix and consider diversifying their tenant base to include both voucher holders and market-rate tenants. This strategy can help maintain occupancy levels and stabilize cash flow, making the investment more viable in the long term.

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.