Location: San Jose-Sunnyvale-Santa Clara, CA | Metro: San Jose-Sunnyvale-Santa Clara, CA HUD Metro FMR Area
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $3,040 |
| 1 Bedroom | $3,440 |
| 2 Bedrooms | $4,050 |
| 3 Bedrooms | $5,440 |
| 4 Bedrooms | $5,800 |
| 5 Bedrooms | $6,728 |
| 6 Bedrooms | $7,535 |
| 7 Bedrooms | $8,138 |
| 8 Bedrooms | $8,545 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $3,440 | $627,377 | 0.55% | F |
| 2BR | $4,050 | $978,100 | 0.41% | F |
| 3BR | $5,440 | $2,756,612 | 0.2% | F |
| 4BR | $5,800 | $3,682,318 | 0.16% | F |
| 5BR | $6,728 | $4,248,520 | 0.16% | F |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 94040, Mountain View, CA, in fiscal year 2024 is set at $3720. This figure represents the payment standard for Section 8 housing vouchers in your area, meaning it's the maximum amount the government will pay on behalf of eligible tenants. It's important to note that this is not the rent you should charge your tenants; it's the reimbursement limit.
To put this into perspective, the local Zillow Observed Rent Index (ZORI) for ZIP 94040 is currently at $3984. This indicates that the market rent in Mountain View slightly exceeds the FMR. As a landlord, you can charge up to $3984, but the government will only cover up to $3720 of that amount through Section 8 vouchers. The tenant would be responsible for the difference.
The demand for rentals in Mountain View is robust, with a renter share of 63.2%. This means that over 60% of the population in the area are renters, which suggests a healthy market for rental properties. However, the average monthly rent being higher than the FMR might impact the number of Section 8 tenants who can afford to live in your property.
If you're considering acquiring a new rental property in Mountain View, the median price for homes is $2,942,397. This high price point could make it challenging to find properties that fit within the budget of a typical Section 8 tenant. To ensure profitability, you'll need to verify that the property meets all the necessary qualifications for the Section 8 program, including passing inspections and adhering to the program's rent limits.
In summary, while the FMR of $3720 sets the reimbursement limit for Section 8 tenants, the local market rent at $3984 means you'll have to balance between attracting tenants and maintaining profitability. With a strong rental market and high home prices, ensuring your property is compliant with the Section 8 standards is crucial before making an investment.
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.