Location: San Jose-Sunnyvale-Santa Clara, CA | Metro: San Jose-Sunnyvale-Santa Clara, CA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $2,190 |
| 1 Bedroom | $2,480 |
| 2 Bedrooms | $2,920 |
| 3 Bedrooms | $3,920 |
| 4 Bedrooms | $4,180 |
| 5 Bedrooms | $4,849 |
| 6 Bedrooms | $5,431 |
| 7 Bedrooms | $5,865 |
| 8 Bedrooms | $6,158 |
U.S. Census Bureau data (2024)
ZIP 95117 in San Jose, CA, is an ideal candidate for inclusion in a Section 8 portfolio strategy as a cash-flow anchor. The area's Fair Market Rent (FMR) for fiscal year 2024 is set at $2710, while the average market rent stands at $2811. This slight premium on market rent over FMR indicates a stable and predictable cash flow, with a narrow margin of only $101 per unit. Landlords can expect steady income without the risk of significant rent shortfalls.
The median home value in ZIP 95117 is $1,830,806, which is considerably high. However, this does not impact the rental strategy directly, as the focus remains on the rental income rather than property appreciation. The low price-cut share of 0.2% suggests that landlords do not need to frequently reduce rents to attract tenants, maintaining consistent revenue streams. The N/A-day Days on Market (DOM) indicates that properties are likely to be rented quickly once they become available, reducing vacancy periods and ensuring continuous cash flow.
The 64.4% renter share in ZIP 95117 demonstrates a strong demand for rental properties, making it a reliable location for generating steady income. Additionally, the median income of $116,348 supports the notion that tenants can afford their rent payments, further stabilizing the cash flow. Given these factors, ZIP 95117 serves as a solid foundation for a Section 8 portfolio, providing landlords and small-portfolio investors with a dependable source of income.
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.