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 | $1,280 |
| 1 Bedroom | $1,390 |
| 2 Bedrooms | $1,680 |
| 3 Bedrooms | $2,170 |
| 4 Bedrooms | $2,520 |
| 5 Bedrooms | $2,923 |
| 6 Bedrooms | $3,274 |
| 7 Bedrooms | $3,536 |
| 8 Bedrooms | $3,713 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,680 | $148,110 | 1.13% | B |
| 3BR | $2,170 | $229,126 | 0.95% | C |
| 4BR | $2,520 | $294,836 | 0.85% | C |
| 5BR | $2,923 | $334,331 | 0.87% | C |
U.S. Census Bureau data (2024)
San Antonio’s 78245 ZIP code represents a balanced mix of established suburban comfort and expanding commercial infrastructure, largely defined by the presence of major employers like Lackland Air Force Base and the surrounding military complex. This area offers a distinct residential character, featuring moderately priced single-family homes and convenient access to Loop 1604, making it a practical hub for military personnel and commuters working in the broader San Antonio metro area. The neighborhood retains a family-friendly atmosphere with local parks and a growing retail scene, though investors should remain mindful of standard San Antonio property maintenance regulations.
From a strictly numerical standpoint, the 78245 market presents a notable divergence between the Section 8 Housing Assistance Payment contract and open-market rates. The HUD FY2026 Fair Market Rent for a 2-bedroom unit is set at $1,660, while the current Zillow market rent index sits at $1,424. This creates a substantial premium of $236 per month for voucher-compliant units over market averages. Real estate values remain accessible here, with a median home value of $259,539 and a specific median 2BR sale price of $151,784. However, liquidity is a consideration, as the median days on market lingers at 110 days.
With 31.3% of the population renting and a median household income of $90,029, the tenant pool demonstrates a solid capacity for housing consumption. While the median income suggests the area is not exclusively low-income, the proximity to the military installation ensures a steady stream of tenants who may qualify for or prefer the stability of Housing Choice Vouchers. Local schools generally perform well relative to the district, adding to the neighborhood’s appeal for long-term renters, and public transit connections remain a focal point for city planning discussions in this sector.
The Section 8 verdict for 78245 is decisively geared toward cash flow maximization. The $236 gap between the $1,660 2BR FMR and the $1,424 market rent allows investors to secure guaranteed government payments that significantly exceed standard neighborhood leases. Coupled with the low cost of entry—evidenced by the $151,784 median 2BR sale price—this ZIP offers a strong yield potential, provided investors can manage the extended 110-day turnover timeline.
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.