Location: San Jose-Sunnyvale-Santa Clara, CA | Metro: San Jose-Sunnyvale-Santa Clara, CA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $2,460 |
| 1 Bedroom | $2,780 |
| 2 Bedrooms | $3,270 |
| 3 Bedrooms | $4,390 |
| 4 Bedrooms | $4,690 |
| 5 Bedrooms | $5,440 |
| 6 Bedrooms | $6,093 |
| 7 Bedrooms | $6,580 |
| 8 Bedrooms | $6,909 |
The analysis of ZIP code 95153, located within the San Jose-Sunnyvale-Santa Clara, CA HUD Metro FMR Area, reveals several key points regarding its suitability for Section 8 real estate investments.
The first question addresses whether the rent math works. The Fair Market Rent (FMR) for ZIP 95153 in fiscal year 2024 is set at $3130. However, the lack of specific market rent data makes it impossible to directly compare these figures. Without a benchmark for market rent, landlords must rely on the FMR to ensure their properties remain competitive and profitable within the Section 8 program.
Regarding the affordability of acquisition, the missing data on median home values, days on market (DOM), and the percentage of homes that have been subject to price cuts means that we cannot provide a definitive answer. Landlords and small-portfolio investors would need to conduct further research into recent real estate transactions within the area to gauge how feasible it is to acquire properties without overpaying.
The third point concerns tenant demand. With no specific population figure or percentage of renters available, we cannot quantify the exact number of potential tenants. This absence of data hinders our ability to assess the robustness of the rental market in ZIP 95153.
In conclusion, while ZIP 95153 offers a clear FMR guideline for Section 8 rents at $3130, the lack of detailed local market data complicates the analysis. Investors should proceed with caution and seek additional information on property values, market conditions, and tenant demographics before making any investment decisions. The verdict is that ZIP 95153 presents an opportunity but requires thorough due diligence to confirm its viability for Section 8 investments.
Data Sources: FMR data from HUD (2027).
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.