Location: San Jose-Sunnyvale-Santa Clara, CA | Metro: San Jose-Sunnyvale-Santa Clara, CA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $2,340 |
| 1 Bedroom | $2,660 |
| 2 Bedrooms | $3,110 |
| 3 Bedrooms | $4,110 |
| 4 Bedrooms | $4,470 |
| 5 Bedrooms | $5,185 |
| 6 Bedrooms | $5,807 |
| 7 Bedrooms | $6,272 |
| 8 Bedrooms | $6,586 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 program in ZIP 95013 reveals a critical gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for ZIP 95013 in fiscal year 2024 is set at $2650. However, recent data indicates that the median home value in this area is $1,458,300, which is significantly higher than the national average and even above the state average in California.
Given the lack of specific market rent figures, we infer that the market rent in 95013 likely exceeds the FMR. This suggests that landlords accepting Section 8 vouchers could face a shortfall compared to open-market rates. The difference between the FMR and the potential market rent could be substantial, potentially impacting the profitability of rental properties.
The median household income in 95013 is $173,646, indicating a relatively affluent area. Despite this, 19.0% of the population are renters, suggesting a diverse demographic mix. In such a context, landlords should carefully consider the implications of accepting Section 8 tenants.
If the FMR were to be lower than the actual market rent, landlords would need to evaluate whether the guaranteed payment from the voucher program offsets the reduced rental income. This scenario makes the ZIP 95013 a yield play, where landlords might prioritize stability over maximizing rental revenue.
Conversely, if the FMR is higher than the market rent, landlords could still benefit from renting to voucher holders without compromising their income. However, the current data suggests the opposite, with FMR being a benchmark below the likely market rent in 95013.
To conclude, the decision to participate in the Section 8 program in ZIP 95013 should be based on an assessment of the local rental market conditions and the specific terms offered by the voucher program. Given the high median home value and income levels, landlords might find themselves better off seeking tenants who can pay closer to market rates.
Data Sources: FMR data from HUD (2027). 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.