Section 8 Fair Market Rent (FMR) for ZIP 78250 - 2027

Investment Score for ZIP 78250

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	$1,250
1 Bedroom	$1,360
2 Bedrooms	$1,640
3 Bedrooms	$2,120
4 Bedrooms	$2,460
5 Bedrooms	$2,854
6 Bedrooms	$3,196
7 Bedrooms	$3,452
8 Bedrooms	$3,625

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,640	$173,127	0.95%	C
3BR	$2,120	$233,782	0.91%	C
4BR	$2,460	$281,325	0.87%	C
5BR	$2,854	$335,599	0.85%	C

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 78250 (San Antonio, TX) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 78250 is set by HUD for 2026. For a two-bedroom unit, the FMR is $1640 per month. This figure represents 24.4% of the median household income in the area, which stands at $80,659. The actual rental rates for a two-bedroom unit in the market are likely higher than the FMR, as evidenced by the Zillow median price-to-FMR ratio of 8.9x. This suggests that the actual median rent for a two-bedroom unit could be around $14,500 annually, or approximately $1208 monthly, based on the FMR. However, given the high price-to-FMR ratio, it is reasonable to assume that actual market rents are significantly above the FMR. Voucher holders face constraints due to the disparity between FMR and market rents. They may struggle to find units within their budget, particularly if landlords are unwilling to accept vouchers due to the perceived administrative burden. Additionally, the occupancy rate of 95.0% indicates a tight rental market, further limiting options for voucher holders. #### Affordability & Renter Profile ZIP code 78250 has a population of 57,323, with 26.9% of residents being renters. This means there are approximately 15,366 renters in the area. Given the median household income of $80,659, the average renter would have a household income of around $21,668 annually, assuming they are representative of the overall population. With the FMR for a two-bedroom unit being $1640, this represents about 24.4% of the median income, which is generally considered affordable. However, the actual market rents, which are likely much higher, could make housing less accessible for many residents. The tight market conditions, indicated by the high occupancy rate, suggest that there is a strong demand for rental properties in 78250. This could mean that landlords have the upper hand in setting rents, potentially leading to higher costs for tenants. The fact that the Zillow median price for a two-bedroom home is $175,787 also points to a relatively expensive housing market, where owning a home might be out of reach for many lower-income residents. #### Investor Angle From an investor perspective, the ZIP code 78250 presents both opportunities and challenges. The FMR for a two-bedroom unit is $1640, but the actual market rents are likely much higher, possibly around $14,500 annually. If an investor can secure a property at or below the FMR, they could achieve positive cash flow, especially considering the high occupancy rate and strong demand for rentals. However, the high price-to-FMR ratio of 8.9x implies that the majority of properties are priced well above the FMR, making it difficult to find deals that align with Section 8 guidelines. In terms of investment grade, ZIP code 78250 appears to be a moderate-risk area. While there is a significant number of renters, the high cost of living and the potential difficulty in finding properties that meet FMR requirements could impact long-term profitability. Investors should carefully consider the balance between market rents and FMR when evaluating potential investments. #### Specific Actionable Insights 1. **Focus on Properties Below FMR**: Investors should prioritize acquiring properties that are priced at or below the FMR of $1640 for a two-bedroom unit. This will ensure compliance with Section 8 guidelines and potentially provide better cash flow opportunities. Given the high price-to-FMR ratio, this might require targeting older or less desirable properties that are still within the affordability range. 2. **Consider Smaller Units**: Since the FMR for smaller units (0BR and 1BR) is lower ($1240 and $1350 respectively), focusing on these types of units could offer more flexibility in terms of pricing and tenant selection. This strategy could help mitigate the risk associated with the high market rents and the limited availability of affordable housing. 3. **Engage with Local Landlords**: Building relationships with local landlords who are willing to accept Section 8 vouchers can be crucial. This might involve offering incentives such as faster turnover times or assistance with the application process. Engaging with landlords can also provide insights into the local rental market dynamics and help identify areas where rents are closer to the FMR. #### Bottom Line Given the high price-to-FMR ratio and the tight rental market, ZIP code 78250 presents a challenging environment for Section 8-focused investors. The recommendation for this ZIP code is to **Skip** unless investors can find properties priced at or below the FMR. The high market rents and limited supply of affordable units make it difficult to achieve positive cash flow while adhering to Section 8 guidelines. Investors looking to enter this market should focus on properties that are already within the FMR range or consider alternative investment strategies that do not rely solely on Section 8 vouchers.

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.