Section 8 Fair Market Rent (FMR) for ZIP 78233 - 2027

Investment Score for ZIP 78233

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	$1,240
1 Bedroom	$1,340
2 Bedrooms	$1,620
3 Bedrooms	$2,100
4 Bedrooms	$2,430
5 Bedrooms	$2,819
6 Bedrooms	$3,157
7 Bedrooms	$3,410
8 Bedrooms	$3,581

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,620	$172,820	0.94%	C
3BR	$2,100	$221,731	0.95%	C
4BR	$2,430	$265,370	0.92%	C
5BR	$2,819	$319,606	0.88%	C

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 78233 (San Antonio, TX) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 78233 in San Antonio, TX, as of 2026, is set at $1630 for a two-bedroom unit. This figure represents 25.6% of the median household income in the area, which stands at $76,421. However, the actual rental market prices are significantly higher. The Zillow median price for a two-bedroom home in this ZIP code is $170,151, indicating that the average rent for a similar property would be much higher than the FMR. Given the high actual rent prices compared to the FMR, there are significant constraints for voucher holders. For instance, a voucher holder might struggle to find a landlord willing to accept a voucher for a two-bedroom unit if the rent exceeds $1630. This discrepancy between FMR and actual rents can lead to a situation where voucher holders are limited to smaller units or must seek housing outside their preferred areas. #### Affordability & Renter Profile ZIP code 78233 has a population of 48,911, with 39.6% of residents being renters. This indicates a substantial demand for rental properties in the area. The occupancy rate of 95.5% suggests that the market is relatively tight, with few vacant units available. Given the median household income of $76,421, it is likely that many renters in this ZIP code are middle-class individuals who may find it challenging to afford the high rental prices without assistance. The Price-to-FMR ratio of 8.7x for a two-bedroom unit highlights the extreme disparity between the cost of renting and the government-set fair market rates. This ratio underscores the difficulty renters face in finding affordable housing, particularly those relying on Section 8 vouchers. The high ratio also implies that landlords may be less inclined to participate in the Section 8 program due to the lower returns relative to market rents. #### Investor Angle From an investor perspective, the ZIP code 78233 presents a mixed picture when considering cash flow at the FMR level. The FMR for a two-bedroom unit is $1630, but the actual market rent is likely to be much higher given the Zillow median price and the occupancy rate. If an investor were to purchase a two-bedroom property at the Zillow median price of $170,151 and aim to achieve a typical cap rate of around 5%, the expected annual rental income would need to be approximately $8,507.50, or roughly $709 per month. This is far below the FMR of $1630, suggesting that the investment would be cash-flow positive even at the FMR level. However, the high Price-to-FMR ratio of 8.7x indicates that the investment grade could be lower due to the limited pool of potential tenants who can afford the FMR. Investors should consider the risk of vacancy and the likelihood of finding tenants willing to pay the FMR versus market rates. Additionally, the tight market and high occupancy rate suggest that there may be opportunities for higher rents, but this would not align with the goals of Section 8-focused investors. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the constraints of the FMR, investors should focus on acquiring one-bedroom or zero-bedroom units, where the FMR is $1340 and $1230 respectively. These units are more likely to be rented by voucher holders, ensuring steady cash flow. 2. **Consider Location Flexibility**: Since the FMR is significantly lower than market rents, investors might need to be flexible about the location of their properties. Areas with slightly lower market rents but still within the ZIP code could offer better opportunities for Section 8 tenants. 3. **Engage with Local Landlords**: Building relationships with local landlords who already participate in the Section 8 program can provide valuable insights into tenant behavior and the challenges of accepting vouchers. This can help investors make informed decisions about pricing and property management. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 78233 is to **Hold**. While the market is tight and offers potential for cash-flow positive investments, the extremely high Price-to-FMR ratio poses significant challenges. Investors should carefully evaluate the demand for smaller units and consider strategic locations within the ZIP code to maximize their chances of attracting voucher holders. However, the overall market conditions suggest that focusing on larger units may not be financially viable for these investors.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.