Section 8 Fair Market Rent (FMR) for ZIP 95008 - 2027

Investment Score for ZIP 95008

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	$2,490
1 Bedroom	$2,810
2 Bedrooms	$3,310
3 Bedrooms	$4,450
4 Bedrooms	$4,740
5 Bedrooms	$5,498
6 Bedrooms	$6,158
7 Bedrooms	$6,651
8 Bedrooms	$6,984

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
1BR	$2,810	$554,916	0.51%	F
2BR	$3,310	$923,697	0.36%	F
3BR	$4,450	$1,803,721	0.25%	F
4BR	$4,740	$2,227,533	0.21%	F
5BR	$5,498	$2,741,479	0.2%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 95008 (Campbell, CA) #### Section 8 Voucher Dynamics In ZIP code 95008, the Fair Market Rent (FMR) for a two-bedroom apartment is set at $3530 per month for 2026. This represents 30.0% of the median household income in Campbell, which stands at $141,131. However, the actual rental market is significantly higher. The Zillow median price for a two-bedroom home is $951,298, indicating that the price-to-FMR ratio is approximately 22.5x. This means that the actual rent for a two-bedroom unit is likely much higher than the FMR, creating significant constraints for voucher holders. For instance, if a landlord charges the median rent of $3530, a Section 8 tenant would only receive a voucher covering up to $3530, leaving them to pay any additional costs out-of-pocket. Given the high actual rental rates, many voucher holders may find it difficult to secure housing within their budget. #### Affordability & Renter Profile The ZIP code 95008 has a population of 48,333, with 50.4% of residents being renters. This indicates a substantial demand for rental properties in the area. The occupancy rate of 93.6% suggests that the market is quite tight, with very few vacant units available. The high median household income of $141,131 implies that many residents can afford higher rents, but the large percentage of renters also indicates a diverse demographic where affordability remains a concern. Given the high price-to-FMR ratio, it is clear that the rental market is not particularly affordable for those relying on Section 8 vouchers. The median rent of $3530 is already a significant portion of the median income, and the actual market rents are even higher, making it challenging for low-income renters to find suitable housing. #### Investor Angle From an investor perspective, the ZIP code 95008 presents a mixed picture. While the actual rental market is robust, the FMRs are set significantly lower. To determine if this ZIP is cash-flow positive at FMR, we need to consider the typical rental rates versus the FMR. With a Zillow median price of $951,298 for a two-bedroom home, the implied monthly rent is around $3530, which matches the FMR. However, given the price-to-FMR ratio of 22.5x, actual rents could be much higher, potentially exceeding $79,425 ($3530 * 22.5). This suggests that landlords who can secure tenants paying market rates will have strong cash flow, but those relying solely on FMR will face challenges. The investment grade for this ZIP code is likely to be high due to the strong demand and relatively high occupancy rates. However, the reliance on Section 8 vouchers may introduce additional administrative burdens and lower potential returns compared to market-rate rentals. Investors should carefully evaluate the balance between voucher-based and market-rate rentals to maximize profitability. #### Specific Actionable Insights 1. **Target Market-Rate Rentals**: Given the high price-to-FMR ratio, investors should focus on securing tenants willing to pay market rates rather than relying solely on Section 8 vouchers. A two-bedroom unit renting at $79,425 per month (based on the 22.5x ratio) would provide significantly better cash flow compared to the FMR of $3530. 2. **Consider Mixed-Income Developments**: Developments that cater to both Section 8 voucher holders and market-rate renters can help balance the financial risks. By allocating a portion of units to voucher holders and the rest to higher-paying tenants, investors can ensure steady cash flow while still serving the community. 3. **Evaluate Administrative Costs**: Section 8 properties come with additional administrative costs and requirements. Investors should assess whether these costs outweigh the benefits of the guaranteed rent payments. If the administrative burden is too high, focusing on market-rate rentals might be more advantageous. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 95008 is to **Skip**. The high price-to-FMR ratio and the tight rental market indicate that there is limited opportunity for cash-flow positive investments based solely on FMR. Instead, investors should consider areas with lower ratios or explore mixed-income developments to balance the financial risks and rewards. In Campbell, CA, the rental market is primarily driven by higher-income individuals, and the Section 8 program may struggle to meet the needs of low-income renters in this environment.

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.