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 | $1,460 |
| 1 Bedroom | $1,590 |
| 2 Bedrooms | $1,920 |
| 3 Bedrooms | $2,480 |
| 4 Bedrooms | $2,880 |
| 5 Bedrooms | $3,341 |
| 6 Bedrooms | $3,742 |
| 7 Bedrooms | $4,041 |
| 8 Bedrooms | $4,243 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,480 | $428,876 | 0.58% | F |
| 4BR | $2,880 | $598,950 | 0.48% | F |
| 5BR | $3,341 | $709,851 | 0.47% | F |
U.S. Census Bureau data (2024)
The analysis for ZIP code 78255 reveals a nuanced picture regarding the potential returns for landlords and small-portfolio investors interested in Section 8 properties. The Fair Market Rent (FMR) for a 2-bedroom apartment in this area for FY 2024 is set at $1920 per month, while the Zillow Observed Rent Index (ZORI) indicates a market rent of $1951 per month.
To calculate the gross yield, we annualize these figures and compare them against the median home value of $545,146. For the FMR scenario, the annual rent would be $1920 multiplied by 12, equating to $23,040. This represents an implied gross yield of approximately 4.22% ($23,040 / $545,146).
In contrast, the ZORI market rent scenario annualizes to $23,412 ($1951 * 12), implying a gross yield of about 4.30% ($23,412 / $545,146).
Given the 15.2% renter density and a Days on Market (DOM) of 65 days, the ZORI-based gross yield of 4.30% is more realistic. The higher renter density suggests that there is a significant portion of the population willing to pay market rates, making it less likely that landlords will have to rely solely on the lower FMR to attract tenants. Additionally, the DOM figure indicates that properties are typically occupied within two months, which supports the idea that landlords can achieve closer to market rents.
While the difference between the two yields is minimal, the slightly higher yield based on ZORI reflects the actual rental environment more accurately. Landlords should aim to secure market rents where possible to maximize their investment returns, especially considering the relatively high median home value in the area.
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.