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 | $1,270 |
| 1 Bedroom | $1,390 |
| 2 Bedrooms | $1,670 |
| 3 Bedrooms | $2,160 |
| 4 Bedrooms | $2,510 |
| 5 Bedrooms | $2,912 |
| 6 Bedrooms | $3,261 |
| 7 Bedrooms | $3,522 |
| 8 Bedrooms | $3,698 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,670 | $231,780 | 0.72% | D |
| 3BR | $2,160 | $357,162 | 0.6% | D |
| 4BR | $2,510 | $417,616 | 0.6% | D |
| 5BR | $2,912 | $549,461 | 0.53% | F |
U.S. Census Bureau data (2024)
The classification of ZIP 78232 in San Antonio, TX, hinges on the balance between rental yield and market stability. The Fair Market Rent (FMR) for the fiscal year 2024 is set at $1,650, while the average market rent stands at $1,248. This indicates a potential for higher-than-average rental income, which could be attractive for landlords seeking to maximize their returns. However, the median home value in the area is $380,679, suggesting that the investment capital required to enter this market is relatively high.
The stability of the market can be gauged by several factors including the percentage of renters, days on market (DOM), and median household income. In ZIP 78232, approximately 44.1% of residents are renters, indicating a moderate demand for rental properties. The DOM is 37 days, which is slightly above the national average but still reasonable, implying that properties do sell, though not instantly. Median household income is $85,273, which provides a solid financial base for tenants, reducing the risk of default.
Based on these figures, ZIP 78232 leans towards being a steady-cashflow zone. While the FMR suggests a higher potential yield compared to the market rent, the significant investment needed to purchase property in this area tempers the attractiveness of high-yield strategies often associated with flipping. The 44.1% renter rate and median income support stable tenant occupancy and timely rent payments, which are crucial for consistent cash flow. Additionally, the 37-day DOM suggests a market where properties will eventually sell, but rapid turnover is unlikely.
To summarize, the higher FMR compared to market rent points to a potentially lucrative rental market. However, the need for a substantial upfront investment and the moderate DOM indicate a preference for long-term stability over short-term flips. Landlords and small-portfolio investors should consider this ZIP code as an opportunity for reliable cash flow rather than a high-risk, high-reward venture.
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.