Section 8 Fair Market Rent (FMR) for ZIP 95242 - 2027

Location: Stockton-Lodi, CA | Metro: Stockton-Lodi, CA MSA

Investment Score for ZIP 95242

F
Monthly Rent (2BR)
$2,300
Median Price (2BR)
$414,053
1% Rule
0.56%
Annual Yield
6.67%

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$1,740
1 Bedroom$1,860
2 Bedrooms$2,300
3 Bedrooms$3,180
4 Bedrooms$3,840
5 Bedrooms$4,454
6 Bedrooms$4,988
7 Bedrooms$5,387
8 Bedrooms$5,656

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 $2,300 $414,053 0.56% F
3BR $3,180 $536,160 0.59% F
4BR $3,840 $665,452 0.58% F
5BR $4,454 $732,559 0.61% D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
28,427
Median Household Income
$104,721
Housing Units
11,441
Renter Percentage
29.9%
Occupancy Rate
93.4%
Renter Occupied
3,194

The ZIP code 95242, located in Lodi, California, stands out within San Joaquin County due to its unique mix of residents and housing values. With a total population of 28,427, it has a rental rate of 29.9%, indicating a significant portion of the community lives in leased properties. The median household income in this area is $104,721, which is relatively robust compared to other parts of the county. However, the median home value at $577,359 is notably high, suggesting that homeownership is less accessible to lower-income families.

In terms of Section 8 voucher economics, the Fair Market Rent (FMR) for ZIP 95242 is set at $1,890 for fiscal year 2024. This figure contrasts sharply with the Zillow Observed Rent Index (ZORI), which reports the average market rent at $2,264. Landlords and small-portfolio investors should note that accepting Section 8 vouchers could mean a reduction in rental income compared to market rates. The gap between FMR and ZORI highlights the economic reality faced by tenants who rely on government assistance, as well as the potential challenges for property owners looking to maximize their investment returns.

The data signature for ZIP 95242 suggests a stable environment, characterized by a healthy median income and a substantial number of renters. Despite the high median home value, the rental market appears to be steady, with a notable portion of the population choosing or needing to rent rather than buy. For investors, this stability means there is a consistent demand for rental properties, but also implies that they must consider the financial implications of accepting Section 8 vouchers when setting rental prices and managing their portfolios.

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.