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 |
A skeptical investor might question whether the Fair Market Rent (FMR) of $1,450 for ZIP 78297 in fiscal year 2024 will sufficiently cover the mortgage payments on a single-family home. However, the recent rental listings suggest that homes in neighboring areas are renting for higher amounts, such as $1,600 to $2,900 per month. This indicates that the FMR may be lower than the actual market rates, which could support higher rents.
The second objection could be whether there is enough renter demand at this price point. The data shows there are 30 additional apartments available for rent near ZIP 78297, indicating a robust market. While specific figures for demand in ZIP 78297 are not provided, the surrounding area's activity suggests a healthy pool of potential renters.
Lastly, an investor might wonder if housing vouchers will keep pace with the market rents. According to the recent rental listings, the FMR of $1,450 is below the current market rates, which range from $1,550 to $2,900. This gap means that voucher recipients may struggle to find homes within their budget, potentially leading to a mismatch between voucher availability and market rents.
To summarize, while the FMR of $1,450 may not fully cover mortgage payments, the market rates in neighboring areas are higher, suggesting potential for increased rental income. There appears to be sufficient demand, but the data does not specify the exact number of renters in ZIP 78297. Lastly, housing vouchers may lag behind market rents, creating challenges for voucher holders seeking suitable housing.
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.