Location: Merced, CA | Metro: Merced, CA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,010 |
| 1 Bedroom | $1,100 |
| 2 Bedrooms | $1,360 |
| 3 Bedrooms | $1,870 |
| 4 Bedrooms | $2,260 |
| 5 Bedrooms | $2,622 |
| 6 Bedrooms | $2,937 |
| 7 Bedrooms | $3,172 |
| 8 Bedrooms | $3,331 |
U.S. Census Bureau data (2024)
The market in ZIP code 95303 presents a dynamic landscape that is indicative of current housing pressures and rental trends. With a Fair Market Rent (FMR) set at $1410 for fiscal year 2024, landlords and investors can expect a benchmark that reflects the average cost of rent for a two-bedroom apartment in the area. This figure is crucial for understanding the affordability threshold for renters and setting competitive rental rates.
Comparatively, the market rent as reported by the Census ACS stands at $942. This discrepancy between the FMR and the actual market rent suggests that there is a segment of the rental market in 95303 that is below the fair market rate, possibly due to lower-end properties or areas where rent control measures are in place. It also indicates that while some properties might be priced higher, the overall rental market is still accessible to a broad range of tenants.
The median home value in ZIP 95303 is $797,100, which is significantly higher than the typical rental costs. This disparity highlights the challenge faced by potential homeowners in the area, likely contributing to the high percentage of renters. The renter share of 35.0% points to a substantial portion of the population choosing or needing to rent rather than buy, which could imply ongoing long-term housing pressure as the cost of homeownership remains prohibitive for many.
While the specific data on price-cut share and days on market (DOM) is not available, the high median home value and the relatively low market rent suggest that the housing market in 95303 may be experiencing a situation where demand for rental properties is strong, but the supply of affordable homes for purchase is limited. This scenario creates a steady rental market, beneficial for landlords and small-portfolio investors looking to capitalize on consistent tenant interest.
In summary, ZIP 95303 is a market characterized by a robust rental sector with a notable gap between the Fair Market Rent and actual market rents. The significant median home value and high renter share indicate a region where homeownership is less attainable, leading to sustained rental demand. These factors combine to create an environment favorable for those invested in rental properties.
Data Sources: FMR data from HUD (2027). 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.