Section 8 Fair Market Rent (FMR) for ZIP 94305 - 2027

Location: San Jose-Sunnyvale-Santa Clara, CA | Metro: San Jose-Sunnyvale-Santa Clara, CA HUD Metro FMR Area

Investment Score for ZIP 94305

Monthly Rent (2BR)

$2,290

Median Price (2BR)

$938,356

1% Rule

0.24%

Annual Yield

2.93%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,750
1 Bedroom	$1,980
2 Bedrooms	$2,290
3 Bedrooms	$2,970
4 Bedrooms	$3,240
5 Bedrooms	$3,758
6 Bedrooms	$4,209
7 Bedrooms	$4,546
8 Bedrooms	$4,773

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$2,290	$938,356	0.24%	F
3BR	$2,970	$2,774,775	0.11%	F
4BR	$3,240	$3,554,311	0.09%	F
5BR	$3,758	$3,956,815	0.09%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

18,509

Median Household Income

$83,088

Housing Units

4,002

Renter Percentage

71.6%

Occupancy Rate

81.6%

Renter Occupied

2,336

The ZIP code 94305, encompassing parts of Stanford, California, is a high-demand area characterized by its proximity to prestigious institutions such as Stanford University. This location attracts a diverse population including students, faculty, and professionals, all of whom contribute to a robust rental market.

Fair Market Rent (FMR) for ZIP 94305 in fiscal year 2024 is set at $2650. This figure represents the maximum amount that low-income families should pay for housing, indicating the baseline level of rent in the area.
The average market rent for properties in ZIP 94305 is $2,014 according to Census ACS data. This suggests that while subsidized rents are higher, the overall market reflects a slightly lower average, which can still be profitable for landlords.
The median home value in the area stands at $3,346,454. This high valuation underscores the desirability and economic strength of the neighborhood, making it attractive for investment in both rental and homeownership markets.
Renters make up 71.6% of the local housing market. The dominance of renters highlights the strong demand for rental properties, particularly given the transient nature of the university community.
The median household income in ZIP 94305 is $83,088. This relatively high income level supports a healthy rental market where tenants can afford higher rents, benefiting landlords and investors.
Days on Market (DOM) data is currently unavailable. However, the strong rental demand and high median incomes suggest that rental vacancies are likely to be short-lived, leading to quick property turnover.

In summary, ZIP 94305 presents a favorable environment for real estate investments, especially in rentals. The combination of a high median home value, a significant renter share, and robust median incomes supports a vibrant rental market. Landlords and small-portfolio investors can expect steady returns, with the potential for higher yields due to the subsidized rent levels set by the Fair Market Rent standards. Despite the lack of Days on Market data, the overall economic indicators point towards a dynamic and lucrative investment opportunity.

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.