Location: Stockton-Lodi, CA | Metro: Oakland-Fremont, CA HUD Metro FMR Area
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 | $1,720 |
| 1 Bedroom | $1,830 |
| 2 Bedrooms | $2,270 |
| 3 Bedrooms | $3,140 |
| 4 Bedrooms | $3,790 |
| 5 Bedrooms | $4,396 |
| 6 Bedrooms | $4,924 |
| 7 Bedrooms | $5,318 |
| 8 Bedrooms | $5,584 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,270 | $318,505 | 0.71% | D |
| 3BR | $3,140 | $496,384 | 0.63% | D |
| 4BR | $3,790 | $579,487 | 0.65% | D |
| 5BR | $4,396 | $654,750 | 0.67% | D |
U.S. Census Bureau data (2024)
ZIP 95219 is located in the city of San Jose, CA, and represents a diverse urban neighborhood with a significant population of 31,713 residents. The area is characterized by a substantial rental market, with 39.4% of the population being renters. This indicates a robust demand for rental properties, which is beneficial for landlords and small-portfolio investors looking to capitalize on the housing needs of the local community.
The median household income in ZIP 95219 is strong at $112,268, suggesting a relatively affluent area. However, the median home value stands at $555,815, which is quite high. This combination of factors points to a scenario where many individuals and families may find it challenging to purchase homes and thus rely on renting.
Moving into the specifics of rent economics, the Fair Market Rent (FMR) for ZIP 95219 in fiscal year 2024 is set at $2,170. In comparison, the actual market rent, as measured by Zillow's Observed Rental Index (ZORI), is slightly lower at $2,046. This means that properties receiving Section 8 vouchers can command rents slightly above the market average, providing a potential edge for landlords in this zip code.
Given these economic conditions, ZIP 95219 could be an attractive location for both hands-off voucher operators and hands-on value-add buyers. For those who prefer a hands-off approach, the presence of a reliable tenant base through Section 8 vouchers ensures steady cash flow with minimal risk. On the other hand, for hands-on investors, the opportunity to improve properties and potentially increase their rental value above the FMR presents a compelling value-add strategy. Both types of investors should find the environment conducive to achieving their investment goals.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.