Section 8 Fair Market Rent (FMR) for ZIP 95046 - 2027

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

FY 2027 Fair Market Rent Rates

Unit Size Monthly FMR
Studio$2,100
1 Bedroom$2,380
2 Bedrooms$2,800
3 Bedrooms$3,760
4 Bedrooms$4,010
5 Bedrooms$4,652
6 Bedrooms$5,210
7 Bedrooms$5,627
8 Bedrooms$5,908

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
6,324
Median Household Income
$158,550
Housing Units
1,855
Renter Percentage
24.3%
Occupancy Rate
96.9%
Renter Occupied
436

Housing Authorities Serving ZIP 95046

The potential pitfalls for a landlord investing in ZIP 95046 in San Martin, CA under the Section 8 program are significant. Firstly, the market rent stands at $2,603 while the Fair Market Rent (FMR) for FY 2024 is set at $2,650. This slight difference suggests that landlords might experience higher tenant turnover as vouchers often cover only up to the FMR. Secondly, the vacancy exposure is a concern due to the lack of data on days on market (DOM), which implies uncertainty about how quickly properties can be rented out. Thirdly, the deferred maintenance risk is notable given the typical home value of $1,625,327 and a median income of $158,550. Landlords may face challenges in maintaining properties to the required standards without substantial financial support, as the median income does not reflect the ability to invest heavily in property upkeep.

Despite these risks, there are several factors that mitigate them. The renter share in ZIP 95046 is 24.3%, indicating a relatively high concentration of renters. High renter density generally correlates with increased demand for housing vouchers, potentially leading to a steady stream of tenants who qualify for Section 8 assistance. This demand can help stabilize occupancy rates and reduce the likelihood of prolonged vacancies.

Verdict: Moderate risk for a first-time Section 8 landlord.

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.