Quick answer: RT size = visible-quad pixels target. Filter = Bilinear. Mip Gen Settings = NoMipmaps. Texture Group = UI or 2D Pixels.

In-game security camera renders to a 256×256 RT, displayed on a 512×512 quad. Output looks fuzzy because RT was authored too small for display size.

The Fix

RenderTarget asset:
  Size X / Size Y:           1024 / 1024
  Render Target Format:      RTF_RGBA8
  Filter:                    Bilinear
  Mip Gen Settings:          NoMipmaps
  Texture Group:              UI

SceneCaptureComponent2D:
  Capture Source:             FinalColor (LDR) in RGB
  Texture Target:             yourRT

Match RT size to the maximum on-screen pixels of the surface displaying it. Bilinear softens magnification but no worse than cinematic camera rendering.

Verifying

Stand close to the monitor mesh. Image stays crisp. Compare to 256×256 baseline: visibly fuzzy.

“RT large enough. Filter on. Crisp at viewing distance.”

Related Issues

For RT clearing, see RT clearing. For Draw Text RT, see Draw Text.

RT sized right. Filter right. Sharp.