Location: Stockton-Lodi, CA | Metro: Stockton-Lodi, CA MSA
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,260 |
| 1 Bedroom | $1,350 |
| 2 Bedrooms | $1,670 |
| 3 Bedrooms | $2,310 |
| 4 Bedrooms | $2,790 |
| 5 Bedrooms | $3,236 |
| 6 Bedrooms | $3,624 |
| 7 Bedrooms | $3,914 |
| 8 Bedrooms | $4,110 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,350 | $278,482 | 0.48% | F |
| 2BR | $1,670 | $342,938 | 0.49% | F |
| 3BR | $2,310 | $396,793 | 0.58% | F |
| 4BR | $2,790 | $457,058 | 0.61% | D |
| 5BR | $3,236 | $540,175 | 0.6% | F |
U.S. Census Bureau data (2024)
The potential risks for a Section 8 landlord in ZIP 95204, Stockton, CA, include significant tenant turnover. With a market rent of $1,953 compared to the Fair Market Rent (FMR) of $1,450 for FY 2024, there is a substantial gap that can lead to higher turnover rates as tenants seek subsidies to cover their housing costs. This disparity can also expose landlords to increased vacancy periods, especially given an average Days on Market (DOM) of 24 days, which suggests a competitive rental market where units can remain vacant longer if not priced appropriately.
Additionally, there is a notable risk of deferred maintenance due to the typical home value of $383,456 and the median income of $75,548. The relatively high cost of homes combined with lower median incomes can make it difficult for landlords to invest in necessary property improvements without financial strain, potentially leading to subpar living conditions and further tenant dissatisfaction.
However, these risks must be weighed against the high renter share of 40.6%. A significant portion of the population renting indicates strong demand for housing, particularly for subsidized options such as Section 8 vouchers. This high demand can provide a stable stream of tenants who are committed to staying long-term, mitigating some of the turnover and vacancy concerns.
In conclusion, the investment risk for a first-time Section 8 landlord in ZIP 95204, Stockton, CA, is moderate.
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.