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 | $1,170 |
| 1 Bedroom | $1,240 |
| 2 Bedrooms | $1,540 |
| 3 Bedrooms | $2,130 |
| 4 Bedrooms | $2,570 |
| 5 Bedrooms | $2,981 |
| 6 Bedrooms | $3,339 |
| 7 Bedrooms | $3,606 |
| 8 Bedrooms | $3,786 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,540 | $389,746 | 0.4% | F |
| 3BR | $2,130 | $506,976 | 0.42% | F |
| 4BR | $2,570 | $655,664 | 0.39% | F |
U.S. Census Bureau data (2024)
The classification of ZIP 95237 (Lockeford, CA) hinges on its financial metrics, particularly focusing on the balance between yield and stability. The Fair Market Rent (FMR) for the area in fiscal year 2024 is set at $1,560, which is notably higher than the average market rent of $1,286. This discrepancy suggests a potential for higher rental yields if properties can be rented at the FMR rate.
However, the stability of this market is somewhat compromised. Only 25.0% of residents are renters, indicating a smaller pool of potential tenants compared to areas with a higher percentage of renters. Additionally, the median household income is relatively low at $87,117, which could affect the ability of residents to pay higher rents, thus impacting the overall stability of rental income.
The median home value in ZIP 95237 is $527,877, which is a significant figure but does not directly correlate to rental stability or yield without considering other factors such as vacancy rates and days on market (DOM), which are currently not available. Nonetheless, the combination of a higher FMR and a lower percentage of renters points towards a market that leans towards being a high-yield but potentially less stable environment.
To summarize, ZIP 95237 appears to be a market that offers opportunities for high rental yields due to the disparity between the FMR and the market rent. However, the relatively low percentage of renters and median income suggest caution is needed regarding tenant reliability and long-term cash flow stability. This makes it suitable for landlords who are willing to manage a bit more risk for the sake of higher returns, rather than those seeking a purely steady-cashflow investment zone.
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.