Section 8 Fair Market Rent (FMR) for ZIP 95148 - 2027

Investment Score for ZIP 95148

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	$2,760
1 Bedroom	$3,130
2 Bedrooms	$3,670
3 Bedrooms	$4,930
4 Bedrooms	$5,260
5 Bedrooms	$6,102
6 Bedrooms	$6,834
7 Bedrooms	$7,381
8 Bedrooms	$7,750

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	$3,670	$834,273	0.44%	F
3BR	$4,930	$1,329,150	0.37%	F
4BR	$5,260	$1,569,554	0.34%	F
5BR	$6,102	$1,984,181	0.31%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Market Analysis for ZIP Code 95148 (San Jose, CA) ZIP code 95148 is located in San Jose, California, within Santa Clara County. The area has a population of 44,995 residents, with a median household income of $167,257, which is significantly higher than the national average. Approximately 20.4% of the residents are renters, indicating a relatively small rental market compared to the overall population. The occupancy rate stands at 97.9%, suggesting that the housing stock is nearly fully occupied, pointing towards a tight rental market. ### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP 95148 in 2026 are as follows: - 0BR: $3050 - 1BR: $3470 - 2BR: $4050 (which is 29.1% of the median income) - 3BR: $5350 - 4BR: $5830 These FMRs represent the maximum rent that a Section 8 voucher holder can pay. However, the actual rents in the area are much higher. For instance, the Zillow median price for a 2BR unit is $867,491, which translates to a monthly mortgage payment far exceeding the FMR. The price-to-FMR ratio for a 2BR unit is 17.8x, meaning that the actual rent is 17.8 times higher than the FMR. This significant gap between FMR and actual rents creates substantial constraints for voucher holders, making it difficult for them to find suitable housing within their budget. ### Affordability & Renter Profile Given the high median household income and the tight rental market, the typical renter in ZIP 95148 is likely to be well-employed, possibly working in tech-related industries, which are prevalent in the San Jose area. The 20.4% renter percentage indicates that the majority of residents own their homes, further emphasizing the limited availability of rental units. The affordability of housing is a critical issue, especially for those relying on Section 8 vouchers. With the FMR for a 2BR unit being only $4050, but the actual median rent price being much higher, the market is extremely tight and challenging for low-income renters. ### Investor Angle From an investor perspective, the ZIP code 95148 is not particularly cash-flow positive at the FMR levels. Given the high actual rent prices, properties rented at FMR would likely be underpriced compared to the market value. For example, a 2BR unit priced at $4050 per month would be significantly below the market rate, potentially leading to lower returns on investment. The investment grade for this ZIP code would be considered low due to the difficulty in finding tenants willing to pay market rates and the limited number of units available for rent. ### Specific Actionable Insights 1. **Focus on Larger Units**: Since the FMR for larger units (3BR and 4BR) is closer to the median income percentage, investors might consider focusing on developing or acquiring larger units. A 3BR unit at $5350 would be 31.8% of the median income, and a 4BR unit at $5830 would be 34.8%. These percentages are still within the affordable range for many residents, even if they are not eligible for Section 8 vouchers. 2. **Consider Alternative Rental Programs**: Given the tight rental market and the high actual rent prices, investors could explore alternative rental assistance programs that offer higher subsidies than Section 8. For instance, some local government programs might provide additional financial support to help bridge the gap between FMR and market rent. ### Bottom Line For investors focused specifically on Section 8 vouchers, ZIP code 95148 is not recommended for purchase. The significant disparity between FMR and actual rent prices makes it challenging to find tenants who can utilize the vouchers effectively. The recommendation is to **Skip** this ZIP code for Section 8-focused investments. Instead, investors should look for areas where the FMR is closer to the actual rent prices, ensuring better cash flow and higher chances of finding suitable tenants.

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.