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 | $1,410 |
| 1 Bedroom | $1,490 |
| 2 Bedrooms | $1,840 |
| 3 Bedrooms | $2,490 |
| 4 Bedrooms | $2,960 |
| 5 Bedrooms | $3,434 |
| 6 Bedrooms | $3,846 |
| 7 Bedrooms | $4,154 |
| 8 Bedrooms | $4,362 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,490 | $953,427 | 0.26% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 95227, located within the Stockton-Lodi, CA MSA, reveals several key insights. The HUD Fair Market Rent (FMR) for this area is set at $1690 for fiscal year 2024. However, due to the lack of recent market rent data, it's challenging to make a direct comparison between the HUD FMR and the current market rates. This absence suggests that voucher tenants would likely cashflow at the HUD FMR rate, given the scarcity of updated local rental pricing.
The median home value in ZIP 95227 stands at $965,403, which can be used to derive the rent-to-price ratio. Assuming an average mortgage rate and property tax, the annual cost of owning a home in this area would be approximately $57,924, leading to a monthly cost of around $4,827. This yields a rent-to-price ratio of about 0.35, indicating that rental income is significantly lower than potential home ownership costs. Such a low ratio could suggest a favorable environment for rental properties, especially those catering to Section 8 tenants, as the gap between rental income and home ownership costs is substantial.
The absence of specific data on the median days on market (DOM) and the percentage of price cuts indicates that the rental market may be relatively stable compared to the buying market. Without fluctuations in the selling market, it's reasonable to assume that rental prices are also steady, making it easier for landlords to predict and manage their cash flows.
In conclusion, the strongest investor angle in ZIP 95227 is cash flow. The HUD FMR of $1690 provides a reliable and consistent income stream for landlords, particularly when the rent-to-price ratio is considered. Given the high median home value and the lack of recent market rent data, investing in properties that can attract voucher tenants ensures a steady cash flow, which is crucial for small-portfolio investors and landlords alike.
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.