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 | $1,430 |
| 1 Bedroom | $1,560 |
| 2 Bedrooms | $1,880 |
| 3 Bedrooms | $2,430 |
| 4 Bedrooms | $2,820 |
| 5 Bedrooms | $3,271 |
| 6 Bedrooms | $3,664 |
| 7 Bedrooms | $3,957 |
| 8 Bedrooms | $4,155 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,430 | $366,460 | 0.66% | D |
| 4BR | $2,820 | $460,555 | 0.61% | D |
| 5BR | $3,271 | $542,659 | 0.6% | D |
U.S. Census Bureau data (2024)
The analysis of the Section 8 cap-rate picture for ZIP code 78261 reveals some interesting insights for landlords and small-portfolio investors. The Fair Market Rent (FMR) for a 2-bedroom apartment in ZIP 78261 for FY 2024 is set at $1930 per month. This translates into an annualized income of $23,160. In contrast, the Zillow Observed Rental Index (ZORI) indicates a market rent of $1,530 per month, which annualizes to $18,360.
To understand the implications, let's calculate the gross yields based on the median home value of $437,622. Using the FMR scenario, the implied gross yield is approximately 5.29%, calculated by dividing the annual rental income ($23,160) by the median home value ($437,622). For the market rent scenario, the gross yield drops to about 4.19%, calculated similarly by using the annualized market rent ($18,360).
The 20.2% renter density suggests that the local market has a relatively low demand for rentals compared to owner-occupied homes. Additionally, the Days on Market (DOM) of 74 days indicates a moderate speed in which properties are typically rented out, neither too quick nor too slow. Given these factors, the market rent scenario seems more realistic. Landlords should consider that while the FMR provides a higher monthly rental rate, the actual rental rates they can achieve might be closer to the market rent due to the lower renter density and the time it takes to secure a tenant.
In conclusion, for ZIP 78261, the gross yield under the Section 8 FMR is 5.29%, whereas the market rent scenario offers a gross yield of 4.19%. Investors should weigh these figures against the local rental market conditions and the potential challenges of attracting tenants, especially considering the 20.2% renter density and the 74-day DOM. These numbers provide a clear basis for understanding the financial landscape and making informed decisions.
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.