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 | $2,850 |
| 1 Bedroom | $3,170 |
| 2 Bedrooms | $3,780 |
| 3 Bedrooms | $5,040 |
| 4 Bedrooms | $5,350 |
| 5 Bedrooms | $6,206 |
| 6 Bedrooms | $6,951 |
| 7 Bedrooms | $7,507 |
| 8 Bedrooms | $7,882 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $3,780 | $1,294,816 | 0.29% | F |
| 3BR | $5,040 | $3,124,163 | 0.16% | F |
| 4BR | $5,350 | $4,144,267 | 0.13% | F |
| 5BR | $6,206 | $4,789,324 | 0.13% | F |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP 95070, Saratoga, CA, for fiscal year 2024 is set at $3910. This figure represents the maximum amount that a landlord can charge for rent under the Section 8 program, known officially as the Housing Choice Voucher Program. It's important to note that this is not the actual rent you'll receive; rather, it's the ceiling on the rent portion covered by the voucher.
To put this into perspective, consider the local market. The Zip Level Owner Rent Index (ZORI), which reflects typical rental rates in the area, is currently at $5,914. This means that the FMR is significantly lower than the average market rate, indicating that Section 8 tenants will be paying less than market value for housing in this ZIP code.
The demand for affordable housing in Saratoga is evident. According to recent data, the renter share of the population is 13.4%, meaning that over one-tenth of the residents are looking for rental properties. This suggests a steady pool of potential Section 8 tenants who are in need of affordable housing options.
If you're planning to acquire a property for Section 8 rentals, the median home value in ZIP 95070 is approximately $4,178,204. This high price point underscores the significant investment required to enter this market. However, the long-term stability and government backing of Section 8 vouchers can offset some of the financial risks associated with such a substantial purchase.
Before committing to a Section 8 rental property, ensure you understand the property inspection requirements. The housing authority will inspect your property to confirm it meets the minimum standards of health and safety. This includes checking for structural integrity, cleanliness, and adherence to local building codes. If your property does not pass inspection, you may have to make costly repairs before becoming eligible for the program.
In summary, the FMR of $3910 sets a limit on rent charges for Section 8 tenants, while the ZORI of $5,914 indicates higher market rates. With a renter share of 13.4%, there is a consistent demand for affordable housing. The acquisition cost of around $4,178,204 highlights the significant investment involved. Verify your property meets all inspection criteria before proceeding with a Section 8 rental.
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.