Texas Section 8 Markets, Graded Straight
Texas is a split Section 8 state. San Antonio earns a B for reliable cashflow with the right property, while Houston lands at C, where high taxes and prices mean you cherry-pick rather than carpet-screen. The statewide median 3-bed voucher sits near $1,713/mo across the two Southwest markets.
The catch is carrying cost. Property tax runs around 1.7% statewide and insurance near 1.5% with storm and flood exposure, so the drag is real and Houston in particular needs careful underwriting. Don't assume the whole state cash-flows. Screen San Antonio and Houston addresses free on CloseHound to see which deals survive the math.
Section 8 markets in Texas, best cash flow first
Voucher figures are HUD SAFMR 3-bedroom medians (FY2026) across each market's screened ZIP codes. Open a market for the full ZIP-level table.
Texas Section 8 FAQ
Is Texas a good Section 8 market?+
Only selectively. San Antonio grades B and cash-flows with the right property, but Houston grades C, where ~1.7% property tax plus storm-and-flood insurance push cashflow into exception territory.
What's the Section 8 voucher rent for a 3-bed in Texas?+
The statewide median 3-bedroom voucher across San Antonio and Houston is about $1,713/mo for FY2026, based on HUD payment standards. Houston's higher voucher is offset by its higher costs.
What's the property-tax and insurance drag in Texas?+
Texas carries a heavy combined drag: property tax around 1.7% of value and insurance near 1.5% with flood and storm exposure. Both line items must be underwritten before the rent looks attractive.
How do I find cash-flowing Section 8 deals in Texas?+
Favor B-grade San Antonio for steadier yield and treat Houston as selective. Run every address through CloseHound free to net the HUD voucher against the ~1.7% tax and high insurance before you commit.
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