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 | $1,020 |
| 1 Bedroom | $1,110 |
| 2 Bedrooms | $1,340 |
| 3 Bedrooms | $1,730 |
| 4 Bedrooms | $2,010 |
| 5 Bedrooms | $2,332 |
| 6 Bedrooms | $2,612 |
| 7 Bedrooms | $2,821 |
| 8 Bedrooms | $2,962 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,340 | $109,024 | 1.23% | A |
| 3BR | $1,730 | $152,549 | 1.13% | B |
| 4BR | $2,010 | $186,228 | 1.08% | B |
U.S. Census Bureau data (2024)
The dynamics of ZIP 78242 in San Antonio, TX, reveal a market in motion, characterized by a balance between rental and ownership trends. The Fair Market Rent (FMR) for the area stands at $1260 for fiscal year 2024, while the Zillow Observed Rent Index (ZORI) indicates a slightly higher market rent of $1,323. This suggests that the rental market is competitive, with landlords setting rents above the government's benchmark to attract tenants.
A key indicator of market health is the price-cut share, which is currently at 0.2%. This low figure implies that landlords are generally not reducing their rents to fill vacancies, indicating a stable demand for rental properties. The median home value in the area is $153,765, reflecting an affordable market for potential homeowners. However, the lack of available data on days on market (DOM) for listings makes it challenging to fully assess the speed of transactions in the housing market.
The 46.4% renter share highlights a significant portion of the population preferring or needing to rent rather than own homes. This high percentage of renters suggests ongoing long-term housing pressure, as a substantial number of residents may be unable to purchase homes due to financial constraints or other reasons. It also points towards a consistent demand for rental properties, which can be beneficial for landlords and small-portfolio investors looking to capitalize on steady rental income.
In summary, ZIP 78242 presents a market where rental demand is strong, evidenced by the slight premium over the FMR and the minimal need for price cuts. The affordability of home values and the high renter share indicate a mixed environment, but one that leans towards a market where demand for rentals is robust, creating a stable investment opportunity for those interested in the rental sector.
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.