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 | $890 |
| 1 Bedroom | $960 |
| 2 Bedrooms | $1,160 |
| 3 Bedrooms | $1,500 |
| 4 Bedrooms | $1,740 |
| 5 Bedrooms | $2,018 |
| 6 Bedrooms | $2,260 |
| 7 Bedrooms | $2,441 |
| 8 Bedrooms | $2,563 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,160 | $111,048 | 1.04% | B |
| 3BR | $1,500 | $138,195 | 1.09% | B |
| 4BR | $1,740 | $164,450 | 1.06% | B |
U.S. Census Bureau data (2024)
The Section 8 rental market in ZIP code 78237, located in San Antonio, TX, presents a significant gap between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR stands at $1,150, while the market rent, measured by Zillow's ZORI, is $1,299. This discrepancy amounts to a $149 difference, which represents approximately a 13% gap between what voucher holders can afford and the open-market rental rates.
The FMR being lower than the market rent means that landlords who accept Section 8 vouchers must be prepared to lease their properties at rates below the prevailing market conditions. While this can be seen as a potential barrier, it also offers opportunities for yield plays. In San Antonio, where 38.7% of residents are renters and the median income is $42,772, the demand for affordable housing is strong. The median home value of $125,989 further underscores the financial challenges many face when trying to secure housing, making Section 8 vouchers a crucial resource for low-income families.
Accepting Section 8 tenants, despite the lower rent compared to market rates, can stabilize cash flows and provide a reliable source of income given the federal government's role in subsidizing the rent. Additionally, the consistent payment structure associated with Section 8 vouchers can mitigate the risk of non-payment, which is often higher in the open-market rental sector due to the economic realities faced by many renters in San Antonio.
However, landlords should also consider the administrative aspects and potential maintenance costs associated with housing voucher tenants. These factors can influence the overall profitability and management of the property. Despite these considerations, the demand for affordable housing in San Antonio, coupled with the federal support provided through the Section 8 program, makes it a viable option for landlords looking to tap into a steady rental 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.