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 | $1,010 |
| 1 Bedroom | $1,100 |
| 2 Bedrooms | $1,330 |
| 3 Bedrooms | $1,720 |
| 4 Bedrooms | $2,000 |
| 5 Bedrooms | $2,320 |
| 6 Bedrooms | $2,598 |
| 7 Bedrooms | $2,806 |
| 8 Bedrooms | $2,946 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,720 | $336,700 | 0.51% | F |
| 4BR | $2,000 | $414,117 | 0.48% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 78263 reveals some interesting dynamics between federally mandated rental rates and market-driven rents. To begin with, let's annualize the two-bedroom Fair Market Rent (FMR) set at $1500 per month for FY 2024. This translates to an annual income of $18,000. Given the median home value of $349,031, the implied gross yield for a property under Section 8 would be approximately 5.15%. This is calculated by dividing the annual rent ($18,000) by the median home value ($349,031).
In contrast, the market rent for a similar property stands at $1,370 per month, based on Census ACS data. When annualized, this amounts to $16,440 per year. Using the same median home value, the gross yield for market rent would be about 4.71%. Again, this is derived by dividing the annual market rent ($16,440) by the median home value ($349,031).
The higher gross yield under Section 8 suggests that landlords could potentially earn more from properties participating in the program compared to those rented at market rates. However, the reality of the situation is influenced by several factors, including the local rental market conditions and the proportion of renters in the area.
In ZIP 78263, the renter density is 24.2%, indicating that a significant portion of residents are homeowners. This could limit the pool of potential Section 8 tenants, as the program primarily serves low-income renters. Additionally, the Day on Market (DOM) data being N/A implies there might be limited recent sales activity, which can affect the reliability of the median home value used in our calculations.
Given these considerations, while the theoretical gross yield under Section 8 is higher, the actual performance may be tempered by the lower demand for rental properties in general and the specific constraints of the Section 8 program. Landlords should weigh these factors carefully when deciding whether to participate in Section 8 for properties in ZIP 78263.
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.