Section 8 Fair Market Rent (FMR) for ZIP 78247 - 2027

Investment Score for ZIP 78247

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	$1,260
1 Bedroom	$1,370
2 Bedrooms	$1,650
3 Bedrooms	$2,130
4 Bedrooms	$2,480
5 Bedrooms	$2,877
6 Bedrooms	$3,222
7 Bedrooms	$3,480
8 Bedrooms	$3,654

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	$1,650	$181,372	0.91%	C
3BR	$2,130	$268,317	0.79%	D
4BR	$2,480	$321,579	0.77%	D
5BR	$2,877	$386,751	0.74%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 78247 (San Antonio, TX) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 78247 is set by HUD for the year 2026. For a two-bedroom unit, the FMR is $1,640, which represents 21.6% of the median household income of $91,013. However, the actual rental market in this area is significantly higher. According to Zillow, the median price for a two-bedroom home is $181,450, translating into a price-to-FMR ratio of 9.2x. This means that the actual rent for a two-bedroom unit is likely much higher than the FMR, creating a significant constraint for voucher holders who can only pay up to the FMR amount. Landlords accepting Section 8 vouchers must be willing to rent their properties at a rate that is below the market average, which could impact their profitability. #### Affordability & Renter Profile ZIP code 78247 has a population of 51,933, with 22.9% of residents being renters. The occupancy rate is quite high at 96.3%, indicating a tight rental market where demand is strong relative to supply. Given the median household income of $91,013, the majority of residents have relatively good financial standing, but the 22.9% of renters might struggle to find affordable housing options, especially since the actual rents are well above the FMR. The affordability gap is particularly pronounced for low-income families who rely on Section 8 vouchers. These families face challenges in finding landlords willing to accept vouchers due to the lower rent rates compared to market values. #### Investor Angle From an investor’s perspective, the ZIP code 78247 presents a mixed scenario. The FMR for a two-bedroom unit is $1,640, but the actual market rent is likely much higher given the price-to-FMR ratio of 9.2x. If an investor aims to cater specifically to Section 8 voucher holders, they would need to ensure that their rental units are priced at or below the FMR. However, this pricing strategy would result in lower cash flow compared to renting at market rates. To determine if this ZIP code is cash-flow positive at FMR, we need to consider the typical costs associated with property management and maintenance. Assuming a conservative estimate of 30% of the FMR for expenses (including property taxes, insurance, utilities, and maintenance), the net income per month for a two-bedroom unit would be approximately $1,148 ($1,640 - 30% of $1,640). This figure needs to cover mortgage payments, if any, and still provide a profit margin. If the mortgage payment exceeds this amount, it could lead to negative cash flow. The investment grade of this ZIP code depends on several factors, including the local economic conditions, job market stability, and the overall demand for rental properties. With a median household income of $91,013 and a high occupancy rate, there is a strong demand for rental properties, which suggests that the investment risk is relatively low. However, the challenge lies in finding tenants who can afford the market rent without relying on subsidies like Section 8 vouchers. #### Specific Actionable Insights 1. **Targeting the Right Tenant Pool**: Investors should focus on attracting tenants who can afford market rates. Given the high median household income, there is a substantial pool of potential tenants who can pay above the FMR. For instance, targeting professionals or families with dual incomes could help achieve higher rents and better cash flow. 2. **Consideration of Property Type and Location**: In a tight rental market, certain types of properties and locations may command premium rents. Investors should consider developing or acquiring properties that are in high-demand areas, such as near major employment centers, schools, or public transportation hubs. Additionally, properties with modern amenities and well-maintained exteriors are more likely to attract tenants willing to pay market rates. 3. **Strategic Pricing**: If an investor decides to cater to Section 8 voucher holders, they should ensure that their properties are priced at or slightly below the FMR to maximize the chances of securing tenants. For a two-bedroom unit, setting the rent at $1,640 or less would align with the FMR guidelines and potentially attract voucher holders. However, this strategy requires careful management to maintain profitability. #### Bottom Line For Section 8-focused investors, ZIP code 78247 presents a challenging environment due to the high actual rents compared to the FMR. While the area has a strong economy and high occupancy rates, the tight rental market and the significant gap between FMR and market rents make it difficult to achieve positive cash flow solely through Section 8 vouchers. Therefore, the recommendation for investors is to **Skip** this ZIP code if their primary focus is on Section 8 vouchers. Instead, they should consider areas where the FMR is closer to the market rent, or focus on attracting tenants who can afford market rates to ensure better returns on investment.

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.