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 | $2,700 |
| 1 Bedroom | $3,060 |
| 2 Bedrooms | $3,600 |
| 3 Bedrooms | $4,840 |
| 4 Bedrooms | $5,160 |
| 5 Bedrooms | $5,986 |
| 6 Bedrooms | $6,704 |
| 7 Bedrooms | $7,240 |
| 8 Bedrooms | $7,602 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $3,060 | $521,849 | 0.59% | F |
| 2BR | $3,600 | $731,192 | 0.49% | F |
U.S. Census Bureau data (2024)
The ZIP code 95113 in San Jose, CA, is predominantly a renter-heavy area with significant potential for Section 8 tenants. With a population of 2,640, an overwhelming 86.3% of residents are renters, indicating a robust demand for rental properties. This high percentage of renters suggests that there is also likely to be a substantial number of individuals utilizing housing vouchers, making it a prime location for landlords interested in participating in the Section 8 program.
The median household income in this ZIP code is $151,685, which is notably higher than the average for many areas. However, the market rent stands at $3,502 per month, representing approximately 29.7% of the median income when calculated annually. This ratio places a considerable burden on renters, especially those relying on government assistance programs such as Section 8.
To further contextualize, the Fair Market Rent (FMR) for the area is set at $3,620 per month for FY 2024, closely aligning with the market rent but slightly higher. The proximity of these figures means that landlords will need to be mindful of pricing their units competitively to attract Section 8 tenants without exceeding the FMR limits.
A landlord in ZIP 95113 can expect a tenant profile characterized by individuals who are financially dependent on government subsidies to afford housing. These tenants will likely have lower incomes relative to the median, necessitating the use of vouchers to cover the majority of their rent payments. It's important for landlords to understand the administrative requirements of the Section 8 program, including regular inspections and rent calculations based on voucher amounts, to effectively manage properties in this area.
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.