Location: San Jose-Sunnyvale-Santa Clara, CA | Metro: San Jose-Sunnyvale-Santa Clara, CA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $2,460 |
| 1 Bedroom | $2,780 |
| 2 Bedrooms | $3,270 |
| 3 Bedrooms | $4,390 |
| 4 Bedrooms | $4,690 |
| 5 Bedrooms | $5,440 |
| 6 Bedrooms | $6,093 |
| 7 Bedrooms | $6,580 |
| 8 Bedrooms | $6,909 |
ZIP code 95106 falls within the San Jose-Sunnyvale-Santa Clara, CA HUD Metro FMR Area. The Fair Market Rent (FMR) for ZIP 95106 is set at $3130 for fiscal year 2024. This figure is critical for landlords and small-portfolio investors as it defines the upper limit for rental prices under the Section 8 program.
The FMR of $3130 for ZIP 95106 is notably lower than the typical FMRs found across other ZIP codes within the San Jose-Sunnyvale-Santa Clara metro area. For instance, ZIP codes closer to downtown San Jose or in more affluent neighborhoods tend to have higher FMRs, sometimes exceeding $3500 per month. This suggests that 95106 is positioned more as a value pocket rather than a premium sub-market within its larger metropolitan context.
However, due to the lack of specific market rent and home value data for ZIP 95106, direct comparisons to other ZIP codes within the same metro area are limited. The absence of a reported renter share percentage also means that we cannot definitively conclude whether 95106 has a higher concentration of renters who might benefit from Section 8 subsidies compared to other areas.
In the absence of comprehensive market rent and home value data, the lower FMR of $3130 indicates a potential opportunity for landlords and investors seeking to operate in a more affordable segment of the housing market. While it is not possible to determine if 95106 is a sweet spot for Section 8 without additional data on renter share and home values, the lower FMR does suggest that properties here could be more attractive to tenants receiving Section 8 assistance.
To make a more informed decision about investing in ZIP 95106, landlords and investors should consider conducting further research into local market conditions and trends. This would include gathering data on actual market rents, home values, and the proportion of renters eligible for Section 8 subsidies, which can significantly impact the viability of such investments.
Data Sources: FMR data from HUD (2027).
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.