Section 8 Fair Market Rent (FMR) for ZIP 95130 - 2027

Location: San Jose-Sunnyvale-Santa Clara, CA | Metro: San Jose-Sunnyvale-Santa Clara, CA HUD Metro FMR Area

Investment Score for ZIP 95130

Monthly Rent (2BR)

$2,640

Median Price (2BR)

$1,237,324

1% Rule

0.21%

Annual Yield

2.56%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,980
1 Bedroom	$2,240
2 Bedrooms	$2,640
3 Bedrooms	$3,550
4 Bedrooms	$3,780
5 Bedrooms	$4,385
6 Bedrooms	$4,911
7 Bedrooms	$5,304
8 Bedrooms	$5,569

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$2,640	$1,237,324	0.21%	F
3BR	$3,550	$1,973,244	0.18%	F
4BR	$3,780	$2,199,443	0.17%	F
5BR	$4,385	$2,477,621	0.18%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

13,511

Median Household Income

$159,556

Housing Units

5,128

Renter Percentage

35.9%

Occupancy Rate

92.6%

Renter Occupied

1,707

The ZIP code 95130, located in San Jose, CA, is a prime location for real estate investment due to its high median income and strong rental market. This area is characterized by a mix of residential properties, including both single-family homes and multi-unit buildings, making it attractive for various types of investments.

Fair Market Rent (FMR): The FMR for ZIP 95130 in fiscal year 2024 is set at $2,650, indicating the average monthly rent that tenants can afford for a two-bedroom apartment under the Section 8 program.
Market Rent (ZORI): The Zillow Observed Rent Index (ZORI) for the area stands at $2,582, closely aligning with the FMR and suggesting a robust demand for rental properties.
Median Home Value: With a median home value of $2,221,930, ZIP 95130 is among the most expensive areas in San Jose, reflecting a high-end real estate market.
Renter Share: Approximately 35.9% of residents are renters, highlighting a significant portion of the population that relies on the rental market for housing.
Days on Market (DOM): Data on the average number of days properties remain on the market before being rented out is not available, but the strong rental demand suggests quick turnover.
Median Income: The median household income in ZIP 95130 is $159,556, which is well above the national average and supports a healthy rental market.

The analysis of these data points reveals that ZIP 95130 presents a favorable environment for landlords and small-portfolio investors. The alignment between the Fair Market Rent and market rent indicates steady demand, while the high median income supports the ability of residents to pay higher rents. The significant renter share underscores the importance of rental properties in this area, making it a valuable asset for investors looking to capitalize on the local real estate trends. Despite the lack of specific Days on Market data, the overall indicators suggest a market where rental properties can be quickly leased at competitive rates.

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.