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 | $2,490 |
| 1 Bedroom | $2,810 |
| 2 Bedrooms | $3,310 |
| 3 Bedrooms | $4,450 |
| 4 Bedrooms | $4,740 |
| 5 Bedrooms | $5,498 |
| 6 Bedrooms | $6,158 |
| 7 Bedrooms | $6,651 |
| 8 Bedrooms | $6,984 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,810 | $602,181 | 0.47% | F |
| 2BR | $3,310 | $1,030,869 | 0.32% | F |
| 3BR | $4,450 | $1,499,321 | 0.3% | F |
| 4BR | $4,740 | $1,807,988 | 0.26% | F |
| 5BR | $5,498 | $2,008,249 | 0.27% | F |
U.S. Census Bureau data (2024)
2830 is the Fair Market Rent (FMR) for ZIP code 95128 in San Jose, CA, for fiscal year 2024, setting a clear benchmark for rental properties in the area. 3264 is the actual market rent, measured by Zillow's ZORI index, indicating that properties are priced slightly above the FMR. 1500133 is the median home value, reflecting a robust housing market where investments can yield significant returns. 55.3 is the percentage of renters in the area, showing a strong demand for rental properties. 131152 is the median income, which suggests that residents have the financial capacity to meet the higher rents. 11 is the average number of days on market (DOM) for rental listings, demonstrating an efficient market where vacancies are quickly filled. 0.2 is the percentage of properties that have been discounted to attract tenants, indicating that landlords generally set competitive prices without needing to lower them significantly.
In ZIP 95128, landlords and small-portfolio investors can leverage these figures to make informed decisions. The gap between the FMR and the actual market rent at 3264 points to a healthy premium for well-managed properties. With a median home value of 1500133 and a median income of 131152, the economic environment supports high rents. The low price-cut share at 0.2 and the short DOM of 11 days further validate the strong rental market dynamics. These conditions collectively present a favorable landscape for rental investments.
Based on these figures, the verdict for Section 8 participation in ZIP 95128 is positive. While the FMR at 2830 may seem lower than the market rent, the stable tenant base and guaranteed payments can be a reliable source of income, especially when combined with the robust local economy and strong rental demand.
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.