Location: Gonzales County, 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 | $980 |
| 1 Bedroom | $1,070 |
| 2 Bedrooms | $1,290 |
| 3 Bedrooms | $1,670 |
| 4 Bedrooms | $1,940 |
| 5 Bedrooms | $2,250 |
| 6 Bedrooms | $2,520 |
| 7 Bedrooms | $2,722 |
| 8 Bedrooms | $2,858 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,670 | $442,018 | 0.38% | F |
U.S. Census Bureau data (2024)
The median income in ZIP code 78638 stands at $69,250, while the market rate for rent is $1,135 according to the latest Census ACS data. This means that the average household must allocate a significant portion of their income towards housing costs, making it challenging but feasible to cover the market rate without financial strain.
However, when comparing the market rate to the Fair Market Rent (FMR) standard of $1,630 set for voucher payments in ZIP 78638 for fiscal year 2024, it becomes evident that the difference between the two rates is substantial. Voucher holders would be able to pay significantly higher rent, which could be advantageous for landlords looking to increase their rental income.
The area has a relatively low percentage of renters at 20.7%, with a total population of 2,135. This suggests that the competition among landlords might not be as intense as in areas with a higher proportion of renters. However, the affordability gap between the median income and both the market rate and the FMR highlights a challenge for many potential tenants who may struggle to find affordable housing options without assistance.
For landlords considering whether to accept Section 8 vouchers or focus on cash-paying tenants, the data points to an opportunity in accepting vouchers. The voucher payment standard is notably higher than the current market rate, allowing landlords to potentially earn more per unit. Additionally, the lower percentage of renters indicates less competition for units, making it easier to attract tenants who qualify for assistance programs.
In summary, ZIP 78638 presents a scenario where the median income is below both the market rate and the FMR for voucher payments. Landlords should consider the benefits of accepting Section 8 vouchers, given the higher payment standards compared to the local market rate. This strategy could help fill vacancies and provide a steady, reliable source of income.
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.