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 | $1,370 |
| 1 Bedroom | $1,490 |
| 2 Bedrooms | $1,790 |
| 3 Bedrooms | $2,320 |
| 4 Bedrooms | $2,690 |
| 5 Bedrooms | $3,120 |
| 6 Bedrooms | $3,494 |
| 7 Bedrooms | $3,774 |
| 8 Bedrooms | $3,963 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,790 | $190,729 | 0.94% | C |
| 3BR | $2,320 | $283,380 | 0.82% | C |
| 4BR | $2,690 | $342,182 | 0.79% | D |
| 5BR | $3,120 | $416,268 | 0.75% | D |
U.S. Census Bureau data (2024)
San Antonio’s 78249 zip code, anchored by the University of Texas at San Antonio (UTSA), functions as a classic university-adjacent rental hub. The neighborhood leans heavily residential with a mix of student apartments and single-family homes, offering investors a dense tenant base driven by academic cycles and hospital staff from the nearby South Texas Medical Center. This area balances campus energy with established suburban infrastructure, making it a consistent draw for long-term and transient renters alike.
From a numbers perspective, the HUD Fair Market Rent (FMR) for a 2-bedroom unit in FY2024 sits at $1,770, significantly outpacing the current Zillow market rent of $1,349. This creates a raw spread of $421 per month in favor of voucher holders, a rare scenario where government payments exceed typical market rates. With median home values at $301,401 and a relatively sluggish 82 days on market, the price-to-rent ratio suggests potential cash flow challenges for conventional landlords, though the voucher premium offers a partial hedge.
The tenant pool here is substantial, with 49.0% of households renting and a median income of $80,565. This income level is healthy, yet the high renter share indicates strong competition for quality units. Families are drawn to the area for its access to Northside Independent School District campuses, and while public transit is present, car ownership remains standard. The combination of university demand and medical center employment creates a diverse pool of applicants, ranging from students to healthcare professionals.
The Section 8 verdict for 78249 leans heavily toward stability and cash flow. The $421 gap between the 2BR FMR ($1,770) and market rent ($1,349) provides a clear financial buffer that is difficult to ignore. While median 2BR sales prices of $191,319 suggest moderate appreciation potential, the immediate return on investment is strongest via voucher compliance. Investors accepting Section 8 can effectively command above-market rates in a slow-moving sales environment, making this a defensive, income-oriented play.
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.