Location: San Antonio-New Braunfels, TX | Metro: San Antonio-New Braunfels, TX HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,090 |
| 1 Bedroom | $1,190 |
| 2 Bedrooms | $1,430 |
| 3 Bedrooms | $1,850 |
| 4 Bedrooms | $2,150 |
| 5 Bedrooms | $2,494 |
| 6 Bedrooms | $2,793 |
| 7 Bedrooms | $3,016 |
| 8 Bedrooms | $3,167 |
The analysis for ZIP code 78278 in Texas reveals incomplete data points, making it challenging to provide a comprehensive cap-rate picture. However, we can still derive some insights based on the available information.
The Fair Market Rent (FMR) for a 2-bedroom apartment in ZIP 78278 for fiscal year 2024 is set at an annual rate of $17,400 ($1450 per month). This figure represents the maximum amount that a landlord could receive from a tenant participating in the Section 8 program. The implied gross yield for this scenario would be calculated by dividing the annual rental income by the median home value. Unfortunately, the median home value for ZIP 78278 is not available, which hinders a precise calculation of the gross yield.
Without the market rent data, it's impossible to compare the gross yield of market rents to that of the Section 8 rates. Typically, market rents can exceed the FMR, leading to potentially higher gross yields for landlords not participating in the Section 8 program. However, the lack of market rent data means we cannot quantify this potential difference.
The missing data on renter density and days on market (DOM) further complicates the analysis. Renter density can influence the demand for rental properties, including those under Section 8, while DOM provides insight into how quickly units are rented out, affecting vacancy rates and thus the overall profitability of a property.
To make a concrete comparison between Section 8 and market rents, we need the median home value and market rent figures. These would allow us to calculate the gross yields and assess the relative attractiveness of each option. For now, it's clear that the Section 8 rent of $17,400 annually is a known baseline, but without additional data, it's difficult to determine if this represents a better investment opportunity compared to renting at market rates.
Data Sources: FMR data from HUD (2027).
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.