Section 8 Fair Market Rent (FMR) for ZIP 95134 - 2027
Location: San Jose-Sunnyvale-Santa Clara, CA | Metro: San Jose-Sunnyvale-Santa Clara, CA HUD Metro FMR Area
Investment Score for ZIP 95134
F
Monthly Rent (2BR)
$4,460
Median Price (2BR)
$921,735
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 | $3,350 |
| 1 Bedroom | $3,790 |
| 2 Bedrooms | $4,460 |
| 3 Bedrooms | $5,990 |
| 4 Bedrooms | $6,390 |
| 5 Bedrooms | $7,412 |
| 6 Bedrooms | $8,301 |
| 7 Bedrooms | $8,965 |
| 8 Bedrooms | $9,413 |
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 |
| 1BR |
$3,790 |
$667,542 |
0.57% |
F |
| 2BR |
$4,460 |
$921,735 |
0.48% |
F |
| 3BR |
$5,990 |
$1,359,112 |
0.44% |
F |
Demographics & Housing Statistics
U.S. Census Bureau data (2024)
Median Household Income
$203,649
When considering whether to purchase a property in ZIP 95134 (San Jose, CA) for Section 8 investment, follow this decision tree:
- Does FMR ($4310 - zip FY 2024) clear debt service on a $1,106,452 property?
- Yes: If the Fair Market Rent (FMR) of $4310 can cover the debt service on a property valued at $1,106,452, then this ZIP code is financially viable for Section 8 tenants. Debt service includes mortgage payments and other financing costs.
- No: If the FMR of $4310 cannot cover the debt service on a property priced at $1,106,452, then purchasing for Section 8 purposes would not be advisable due to financial losses.
- Is market rent ($3,442 - ZORI) above, at, or below FMR?
- Above FMR: The market rent of $3,442 is lower than the FMR of $4310. This indicates that Section 8 rents are higher than what the market offers, making it a favorable situation for landlords who prefer Section 8 tenancy over market-rate tenancy.
- At or Below FMR: Since the market rent is below the FMR, there is no scenario where the market rent equals or exceeds the FMR. Thus, this question only applies to situations where the market rent could be higher.
- Are 86.2% renters + N/A-day DOM enough demand?
- Yes: With 86.2% of residents being renters, there is a strong demand for rental properties. However, the lack of available data on days on market (DOM) makes it difficult to assess how quickly units are filled. Despite this, the high percentage of renters suggests a robust market presence.
- No: If the percentage of renters were significantly lower, it might indicate less demand. But given the high percentage, this branch is unlikely unless other factors such as high vacancy rates come into play.
- It Depends: Due to the missing data on days on market, it's challenging to provide a definitive answer. High renter percentages are positive, but without knowing the DOM, it's unclear if units are filling quickly enough to ensure consistent cash flow.
The analysis shows that ZIP 95134 has a high demand for rentals, with Section 8 rents exceeding market rates. However, the viability of purchasing a $1,106,452 property hinges on whether the FMR can cover the debt service. Additionally, the lack of DOM data introduces uncertainty regarding how swiftly units can be leased, impacting cash flow consistency.
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.