Section 8 Fair Market Rent (FMR) for ZIP 78292 - 2027

FY 2027 Fair Market Rent Rates

The economics of Section 8 in ZIP code 78292, located in the San Antonio-New Braunfels County area, are straightforward but require careful consideration. The SAFMR (Zip-Level Fair Market Rent) for a two-bedroom apartment in this ZIP code for FY 2024 is set at $1450. This figure represents the maximum amount that a Section 8 voucher will cover for rent in this specific location.

A voucher holder's rent contribution is generally 30% of their adjusted income. For instance, if a tenant has an adjusted monthly income of $1000, they would contribute $300 towards rent. The remaining balance up to the SAFMR is then paid by the Housing Choice Voucher program, which in this case would be $1150 for a two-bedroom unit.

In addition to the rent subsidy, the Section 8 program also provides utility allowances. These allowances vary based on the type of utilities used, but for simplicity, let’s assume an average utility allowance of $150 per month. This amount is separate from the rent subsidy and directly benefits the tenant.

Landlords should note that while the SAFMR is $1450, the actual reimbursement may be less due to the tenant's portion and the utility allowance. Therefore, the total reimbursement a landlord can expect from the program for a two-bedroom unit would be the sum of the tenant's contribution and the voucher payment, which is capped at the SAFMR.

Given the SAFMR and assuming a tenant contributes $300, the reimbursement gap or surplus is calculated as follows:

If the market rent for a two-bedroom unit in ZIP 78292 were known and higher than $1450, landlords would face a gap between the market rent and the SAFMR. However, since the local market rent is currently listed as N/A, it is impossible to calculate this gap precisely without updated information.

To illustrate with the available data, if the local market rent were hypothetically $1600, the landlord would receive $1450 from the voucher program, leaving a gap of $150 per month. Conversely, if the market rent were lower than the SAFMR, say $1300, landlords would have a surplus, receiving the full market rent plus the difference covered by the voucher program, up to the SAFMR limit.

For ZIP 78292, landlords must use the SAFMR of $1450 to price their units appropriately, ensuring they do not set the rent too high and leave themselves with a significant gap, nor too low, potentially leaving money on the table. The key is to align market expectations with the SAFMR to achieve a balanced outcome.

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.