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 | $1,310 |
| 1 Bedroom | $1,430 |
| 2 Bedrooms | $1,720 |
| 3 Bedrooms | $2,230 |
| 4 Bedrooms | $2,580 |
| 5 Bedrooms | $2,993 |
| 6 Bedrooms | $3,352 |
| 7 Bedrooms | $3,620 |
| 8 Bedrooms | $3,801 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,230 | $361,010 | 0.62% | D |
| 4BR | $2,580 | $432,250 | 0.6% | F |
| 5BR | $2,993 | $523,545 | 0.57% | F |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1,670 for ZIP code 78259 will sufficiently cover the mortgage on a home valued at $401,164. This concern is valid but can be addressed by considering the typical loan terms. Assuming a conventional 30-year fixed-rate mortgage with an interest rate of around 4.5%, the monthly payment on a $401,164 home would be approximately $2,025. While this is higher than the FMR, it's important to note that FMRs are often set below market rates to ensure affordability for low-income households. Thus, landlords can aim to charge closer to market rents, which are higher.
The second objection could be the relatively low percentage of renters at 35.3%. However, this figure does not necessarily indicate a lack of demand. In fact, it suggests that there is a significant portion of homeownership, which can be beneficial for stability and community character. Moreover, the rental demand is still substantial given the population size and the number of units available. Landlords can focus on attracting tenants who value the area's amenities and safety, which are often key factors in rental decisions.
A final point of contention might be whether Housing Choice Vouchers will keep up with the market rents of $1,536. The voucher program is designed to cover a substantial portion of housing costs, typically up to 40% of the area median income. However, the exact amount varies based on individual household income and other factors. To mitigate risk, landlords should consider the voucher payment formula and the likelihood of receiving a subsidy close to the market rate. Additionally, they can look into the local housing authority's policies regarding rent increases and adjustments to ensure long-term financial viability.
In summary, while there are valid concerns about covering mortgage payments, renter demand, and voucher adequacy, the data provides a foundation for addressing these issues. Landlords and small-portfolio investors must carefully consider their strategies and be prepared to adapt to local market conditions.
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.