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 | $1,340 |
| 2 Bedrooms | $1,660 |
| 3 Bedrooms | $2,300 |
| 4 Bedrooms | $2,770 |
| 5 Bedrooms | $3,213 |
| 6 Bedrooms | $3,599 |
| 7 Bedrooms | $3,887 |
| 8 Bedrooms | $4,081 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,340 | $229,347 | 0.58% | F |
| 2BR | $1,660 | $286,253 | 0.58% | F |
| 3BR | $2,300 | $345,559 | 0.67% | D |
| 4BR | $2,770 | $426,507 | 0.65% | D |
| 5BR | $3,213 | $487,322 | 0.66% | D |
U.S. Census Bureau data (2024)
ZIP 95205, located in Stockton, CA, within the Stockton-Lodi, CA MSA metro area, serves as an ideal cash-flow anchor for a Section 8 portfolio strategy. The Fair Market Rent (FMR) for FY 2024 is set at $1,370, which is significantly lower than the market rent of $1,650. This $280 spread per unit provides a consistent and reliable income stream for landlords, ensuring steady cash flow.
The median home value in ZIP 95205 is $328,274, indicating that property acquisition costs are moderate. However, the key advantage lies in the lower FMR compared to the market rent, allowing landlords to secure long-term tenants through Section 8 vouchers while still maintaining a positive cash flow.
The 0.2% price-cut share and N/A-day Days on Market (DOM) suggest that the market in ZIP 95205 is relatively stable, with minimal competition among sellers. This stability further supports the use of this ZIP code as a cash-flow anchor, as it reduces the risk of sudden drops in rental income or property values.
The renter share in ZIP 95205 stands at 50.4%, and the median income is $60,325. These figures indicate a significant population of renters who may benefit from Section 8 assistance, making it easier for landlords to fill units and maintain occupancy rates.
In summary, ZIP 95205 is best suited as a cash-flow anchor within a Section 8 portfolio strategy due to the favorable spread between the FMR and market rent, moderate property values, and a stable market environment. Landlords can expect consistent income with minimal risk, making this ZIP code a solid choice for those looking to balance their investment portfolios with dependable cash flows.
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.