Texas Market Studies

Appraisal

Nov 13

Written By Clarendon

Client

Opportunity Home San Antonio (San Antonio Housing Authority)

Skills

Appraisal, Market Analysis – Affordable Housing

Project Description

Clarendon has been selected by Opportunity Home San Antonio (formerly San Antonio Housing Authority) to provide HUD Section 8 Rent Comparability Studies (RCS) for properties in its San Antonio, Texas portfolio.

Section 8 laws and administrative procedures require housing authorities to obtain and review Rent Comparability Studies (RCS) when initially renewing most Section 8 contracts and when processing rent increases using the Annual Adjustment Factors. The market rents resulting from these studies determine the rents owners can receive and, hence greatly influence whether an owner will renew and continue providing assisted housing or opt-out of the Section 8 contract and convert to unassisted, market rent housing. The market rents set in these studies also drive HUD's outlays for Section 8 project-based subsidy.

Market Overview

San Antonio represents one of the most dynamic multifamily markets in the United States, serving as the second-most populous city in Texas with approximately 2.8 million residents in the metropolitan area. The market benefits from strong underlying economic fundamentals, including diversified employment anchored by healthcare, defense, tourism, and emerging technology sectors, coupled with strong population growth and above-average wage growth.

The San Antonio metropolitan multifamily market comprises 232,125 units across 1,576 properties organized into 17 distinct submarkets as of fall 2025. The market is dominated by several major suburban submarkets, with Northwest San Antonio representing the largest concentration at 62,470 units (26.9% of the total market), followed by North San Antonio with 40,105 units (17.3%) and Far West San Antonio with 31,782 units (13.7%). Other significant submarkets include Northeast San Antonio (21,083 units), North Central San Antonio (16,152 units), Southeast San Antonio (14,783 units), and the rapidly growing Comal County area (13,100 units).

Urban core submarkets including Downtown San Antonio (6,868 units) and Midtown San Antonio (4,446 units) represent a smaller but strategically important portion of the market. The remaining submarkets—including Westside, Southwest, Guadalupe County, Kendall County, and several smaller outlying counties—range from several hundred to approximately 8,000 units each.

The market has experienced one of the largest waves of multifamily development on record, with approximately 8,200 units delivered over the past 12 months and an additional 3,600 units under construction as of fall 2025. From a quality perspective, the market exhibits a notably upscale composition, with 4 & 5 Star properties accounting for 115,757 units (49.9% of inventory)—making San Antonio the second-most weighted toward luxury units of any Texas market—while 3 Star properties comprise 84,212 units (36.3%) and 1 & 2 Star properties represent 32,156 units (13.9%).