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 ZIP code 95173 in California presents a unique challenge for both renters and landlords due to incomplete data on median income and market rent rates. However, we can still analyze the situation based on the Fair Market Rent (FMR) figure provided by the government for the voucher payment standard.
In fiscal year 2024, the FMR for ZIP 95173 is set at $3130. This means that households receiving housing vouchers can be expected to pay up to this amount towards rent. The lack of specific market rate data complicates the analysis, but it's reasonable to infer that if the median income is not reported, there might be significant variability or insufficient data points to establish a reliable median.
The affordability gap in 95173 is likely substantial given the absence of median income data, which suggests that many residents might struggle to meet the FMR without assistance. This scenario could intensify competition among landlords who accept vouchers versus those who prefer cash-paying tenants. Vouchers provide a guaranteed income stream and reduce the risk of non-payment, making them attractive to landlords in areas with high affordability gaps.
However, landlords must weigh this against the administrative burden and potential delays associated with voucher programs. Cash-paying tenants, while they offer immediate payment without government oversight, may be harder to come by in an area where the affordability gap is significant.
The takeaway for landlords is to carefully consider their strategy based on the specific dynamics of 95173. Accepting vouchers can ensure steady rental income and minimize vacancy periods, especially in a market with a pronounced affordability gap. On the other hand, pursuing cash-paying tenants requires a robust understanding of local economic conditions and possibly offering competitive incentives or lower rents to attract stable tenants.
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.