To determine variability in composite properties, the physics of experimental microstructure was first analyzed using image processing techniques. The obtained statistics were used in generation of synthetic microstructures. Synthetic microstructures were rearranged by acceptance rejection criterion to match the statistics of an experimental microstructure. One hundred statistically equivalent realizations of a synthetic microstructure were generated to investigate the effect of microstructural variability on elastic properties. The generated microstructures were converted to finite element models such that each element represents a pixel in the microstructure. Transverse Young's moduli and shear modulus were obtained for each realization. It was observed that there is a minor variation from one realization to another indicating the independence of elastic moduli on fiber spatial locations. This study also shows that the micromechanics model of hexagonal fiber packing can predict the average elastic moduli within 3% error.