Section 8 Fair Market Rent (FMR) for ZIP 95241 - 2027
Location: Stockton-Lodi, CA | Metro: Stockton-Lodi, CA MSA
FY 2027 Fair Market Rent Rates
| Unit Size |
Monthly FMR |
| Studio | $1,530 |
| 1 Bedroom | $1,630 |
| 2 Bedrooms | $2,020 |
| 3 Bedrooms | $2,800 |
| 4 Bedrooms | $3,380 |
| 5 Bedrooms | $3,921 |
| 6 Bedrooms | $4,392 |
| 7 Bedrooms | $4,743 |
| 8 Bedrooms | $4,980 |
To determine if you should buy in ZIP 95241 for Section 8 investments, follow this decision tree:
- 1) Does FMR $1610 (zip FY 2024) clear debt service on a property?
- Yes: If your property's debt service is less than $1610 per month, then the Fair Market Rent (FMR) can cover your expenses. This makes the investment viable under Section 8.
- No: If your debt service exceeds $1610 per month, relying solely on Section 8 payments will not be sufficient to cover your costs. You must either reduce your debt service or seek additional income sources.
- 2) Is market rent above, at, or below FMR?
- Above FMR: If the market rent is higher than $1610, you might consider renting to non-Section 8 tenants to maximize your income. However, this also means you'll have fewer options for Section 8 vouchers.
- At FMR: If the market rent matches the FMR, you can comfortably rent out your properties to Section 8 tenants without financial strain.
- Below FMR: If the market rent is lower than $1610, you might still find it advantageous to accept Section 8 tenants as they provide a guaranteed income source.
- 3) Are renters' demand and days on market (DOM) enough?
- High demand + Low DOM: If the rental market in 95241 has a high percentage of renters and low DOM, it indicates strong demand for housing, which benefits both Section 8 and regular rentals.
- Moderate demand + Moderate DOM: If demand and DOM are moderate, you can still expect reasonable occupancy rates but might need to manage your expectations regarding vacancy periods.
- Low demand + High DOM: If there is low demand and high DOM, it suggests a challenging rental market where finding tenants could be difficult. Consider this before making an investment.
The decision to invest in ZIP 95241 hinges on these factors. Ensure that the FMR can cover your costs, assess the market rent relative to FMR, and evaluate the demand and DOM in the area. With these considerations, you can make a well-informed decision.
Data Sources: FMR data from HUD (2027).
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.