Section 8 Fair Market Rent (FMR) for ZIP 78852 - 2027

Investment Score for ZIP 78852

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$890
1 Bedroom	$930
2 Bedrooms	$1,010
3 Bedrooms	$1,410
4 Bedrooms	$1,640
5 Bedrooms	$1,902
6 Bedrooms	$2,130
7 Bedrooms	$2,300
8 Bedrooms	$2,415

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
3BR	$1,410	$263,117	0.54%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 78852 (New Braunfels, TX) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 78852, as of 2026, is set at $810 for 0-bedroom units, $890 for 1-bedroom units, $970 for 2-bedroom units, $1340 for 3-bedroom units, and $1500 for 4-bedroom units. These figures represent the maximum amount that a Section 8 voucher holder can pay for rent based on the size of the unit they occupy. However, without recent Zillow data, it's challenging to provide a direct comparison between these FMRs and actual rental rates in the area. Despite the lack of specific rental price data, we can infer that there might be some constraints for voucher holders. The FMRs are likely lower than the market rates, which means tenants with vouchers may struggle to find affordable housing options that fit within their budget. This could lead to a situation where voucher holders are limited to certain neighborhoods or types of properties, potentially affecting their ability to choose desirable locations or living conditions. #### Affordability & Renter Profile ZIP code 78852 has a population of 57,434, with 29.5% of residents being renters. The occupancy rate stands at 89.0%, indicating that the majority of housing units are occupied, but there is still a small margin of unoccupied units. Given that 29.5% of the population are renters, this suggests a significant demand for rental housing in the area. The median household income in 78852 is $49,954. For a 2-bedroom unit, the FMR of $970 represents approximately 23.3% of the median income. This indicates that the rental costs are relatively affordable for the average resident, but it also implies that there is a segment of the population who may struggle to afford even the FMR rates. Specifically, those earning below the median income would face tighter financial constraints when trying to secure housing. Given the high occupancy rate and the percentage of renters, it is reasonable to assume that the market is relatively tight. There is likely a competitive environment for rental properties, especially for those that fall within the FMR range. This tightness could make it difficult for voucher holders to find suitable housing, as landlords may prefer higher-paying tenants. #### Investor Angle From an investor perspective, the key question is whether the FMRs are sufficient to cover the costs of owning and managing rental properties in ZIP code 78852. Without specific market rental data, we can only speculate based on the FMRs. If the actual rental rates are significantly higher than the FMRs, then investors focusing solely on Section 8 tenants may find themselves in a cash-flow negative position. However, if the actual rental rates align closely with the FMRs, then the investment could be cash-flow positive. For example, a 2-bedroom unit at $970 per month would need to generate enough revenue to cover property taxes, insurance, maintenance, and other expenses. Assuming a conservative estimate of $500 per month in total expenses, the net cash flow would be $470 per month. This is a positive cash flow, but the profitability would depend on the purchase price and financing terms. In terms of investment grade, the ZIP code appears to have moderate risk. The high occupancy rate suggests a stable demand for rental housing, but the tight market and potential competition from non-voucher tenants could affect the overall performance of the investment. Additionally, the reliance on government funding for Section 8 vouchers introduces regulatory and policy risks that investors must consider. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the FMRs, smaller units such as 0BR and 1BR are likely to be more affordable for voucher holders. Investing in these types of units could increase the chances of finding tenants who can utilize the vouchers effectively. For instance, a 1BR unit at $890 per month would require the investor to ensure that the total monthly expenses do not exceed this amount to maintain positive cash flow. 2. **Consider Location**: Since the market is relatively tight, investors should focus on areas within ZIP code 78852 that are more affordable or less competitive. This could include neighborhoods with lower property values or those that are less desirable to non-voucher tenants. By targeting these areas, investors can potentially attract more Section 8 tenants while avoiding the higher costs associated with prime locations. 3. **Diversify Tenant Base**: While focusing on Section 8 tenants, investors should also consider diversifying their tenant base to include non-voucher tenants. This can help mitigate the risks associated with relying solely on government funding and provide a more stable income stream. For example, a 2BR unit at $970 per month might be more attractive to non-voucher tenants who can afford slightly higher rent, thereby increasing the likelihood of filling vacancies. #### Bottom Line For Section 8-focused investors, ZIP code 78852 presents a mixed picture. On one hand, the high occupancy rate and significant proportion of renters suggest a strong demand for rental housing. On the other hand, the tight market and potential competition from non-voucher tenants could pose challenges. **Recommendation**: Hold. Investors should proceed cautiously and consider diversifying their tenant base to include both Section 8 and non-voucher tenants. This approach can help manage risk and ensure a more stable cash flow. Additionally, focusing on smaller units and less competitive areas within the ZIP code can improve the chances of attracting and retaining Section 8 tenants.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.