Section 8 Fair Market Rent (FMR) for ZIP 95210 - 2027

Investment Score for ZIP 95210

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,340
1 Bedroom	$1,430
2 Bedrooms	$1,770
3 Bedrooms	$2,450
4 Bedrooms	$2,960
5 Bedrooms	$3,434
6 Bedrooms	$3,846
7 Bedrooms	$4,154
8 Bedrooms	$4,362

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,770	$303,149	0.58%	F
3BR	$2,450	$389,217	0.63%	D
4BR	$2,960	$428,430	0.69%	D
5BR	$3,434	$498,289	0.69%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 95210 (Stockton, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 95210 in Stockton, CA, is set by HUD for 2026 as follows: - 0BR: $1150 - 1BR: $1240 - 2BR: $1550 (which represents 27.4% of the median household income) - 3BR: $2160 - 4BR: $2600 These figures represent the maximum rent that a Section 8 voucher holder can pay. However, the actual rents in the area are significantly higher. For instance, the Zillow median price for a 2BR unit is $298,406, which translates into a monthly rental cost of approximately $1,600 based on typical mortgage payments and property management costs. This means that the actual rent for a 2BR unit is about 16.0x the FMR, indicating a substantial gap between what voucher holders can afford and the prevailing market rates. Given this disparity, Section 8 voucher holders face significant constraints in finding suitable housing. The FMR for a 2BR unit is only $1550, whereas the average market rent is much higher. Consequently, voucher holders must either find units that are below market rate or negotiate with landlords who accept lower rent payments. This situation often leads to a limited pool of available properties and can result in long wait times for tenants seeking affordable housing. #### Affordability & Renter Profile ZIP code 95210 has a population of 41,549, with 49.4% of residents being renters. The occupancy rate stands at 95.1%, suggesting a relatively tight rental market where demand is high and supply is constrained. The median household income in the area is $67,991, which means that many residents rely on Section 8 vouchers to make ends meet. The affordability challenge is particularly pronounced given that the FMR for a 2BR unit is only 27.4% of the median income. This indicates that even without assistance, a significant portion of the population would struggle to afford a modest two-bedroom apartment. The high rent-to-income ratio suggests that the market is indeed tight, with limited options for low-income households. Landlords who accept Section 8 vouchers may find themselves in a competitive position, but they also face challenges in covering their costs due to the significant difference between FMR and market rates. #### Investor Angle From an investor perspective, the ZIP code 95210 presents mixed opportunities. The FMR for a 2BR unit is $1550, while the actual market rent is around $1600. Although this represents a slight premium over FMR, it is important to consider the overall financial viability of such investments. To determine if this ZIP code is cash-flow positive at FMR, we need to evaluate the potential returns against the costs. Assuming a typical mortgage payment of $1,600 for a 2BR unit, an investor would likely need to cover additional expenses such as property taxes, insurance, maintenance, and management fees. These costs could easily exceed the FMR, making it difficult to achieve positive cash flow solely through Section 8 vouchers. Furthermore, the investment grade for this ZIP code is moderate. While there is a strong demand for rental properties, the high rent-to-income ratio and the limited number of voucher holders suggest that the risk of vacancy is higher compared to areas with a more favorable economic profile. Investors should carefully assess their ability to manage these risks before entering the market. #### Specific Actionable Insights 1. **Focus on Units Below Market Rate**: Given the high price-to-FMR ratio, investors should focus on acquiring units that are priced below the market rate but still within the FMR limits. For example, targeting 2BR units priced at $1,550 or less can help ensure a steady stream of Section 8 tenants. This approach requires careful negotiation with sellers and understanding of local market dynamics. 2. **Consider Multi-Family Properties**: Since the FMR for larger units (3BR and 4BR) is higher, multi-family properties may offer better cash flow opportunities. A 3BR unit at $2160 or a 4BR unit at $2600 would be more aligned with the actual market rents, providing a buffer against financial losses. Additionally, multi-family properties can benefit from economies of scale in terms of management and maintenance costs. #### Bottom Line For Section 8-focused investors, the ZIP code 95210 presents a challenging but potentially rewarding market. The high demand for rental properties and the significant number of voucher holders create opportunities for those willing to navigate the complexities of the local rental market. However, the tightness of the market and the high rent-to-income ratio mean that investors must be selective and strategic in their acquisitions. **Recommendation**: Hold. While there are opportunities for investors, the market conditions require careful consideration of the financial risks involved. Investors should focus on units that are priced appropriately and have a solid understanding of the local rental landscape before committing to purchases.

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.