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 | $1,360 |
| 1 Bedroom | $1,450 |
| 2 Bedrooms | $1,790 |
| 3 Bedrooms | $2,480 |
| 4 Bedrooms | $2,990 |
| 5 Bedrooms | $3,468 |
| 6 Bedrooms | $3,884 |
| 7 Bedrooms | $4,195 |
| 8 Bedrooms | $4,405 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,790 | $288,303 | 0.62% | D |
| 3BR | $2,480 | $396,300 | 0.63% | D |
| 4BR | $2,990 | $468,358 | 0.64% | D |
| 5BR | $3,468 | $539,201 | 0.64% | D |
U.S. Census Bureau data (2024)
Stockton’s 95206 ZIP code covers the city’s central and southeastern sectors, a region characterized by established single-family neighborhoods and convenient arterial access to Interstate 5 and Highway 99. The area serves as a practical residential hub for local labor, with San Joaquin Delta College acting as a major institutional anchor and economic driver just west of this zone. The neighborhood retains a distinct, historic suburban feel, offering investors a value-play market distinct from the newer developments pushing toward the county’s northern fringe.
Fiscally, the disparity between subsidized payments and market rates requires careful calculation. The HUD SAFMR for a 2-bedroom unit is set at $1,370, while Zillow’s market rent index reaches $2,476, leaving a substantial gap of $1,106 per month that a Housing Choice Voucher will not cover. Median home values here sit at $419,845, with a specific median 2BR sale price of $289,753 and properties moving relatively fast at a median of 37 days on market. Because market rents significantly outpace the FY2024 voucher limits, standard Section 8 leases do not immediately cash-flow at market parity without substantial rent concessions.
Despite the rent gap, demand is supported by a 39.7% renter share and a median household income of $83,432. This income level suggests a working-class tenant pool that may bridge the difference between voucher caps and asking rents, particularly for families seeking access to local amenities like the highly rated Sierra Middle School or major retail centers along Hammer Lane. Proximity to these educational and retail nodes helps sustain occupancy, appealing to tenants who prioritize location over luxury.
The Section 8 verdict for 95206 leans on stability and long-term appreciation rather than immediate maximized cash flow. The high rent-to-value ratio of market units ($2,476 vs. $419,845 value) indicates strong fundamental demand, but the low SAFMR limits subsidy upside. Investors should target this area for its resilient tenant base and potential for property value growth, accepting that voucher rates here act more as a safety net than a primary revenue driver.
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.