Location: Stockton-Lodi, CA | Metro: Modesto, 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 | $2,180 |
| 1 Bedroom | $2,330 |
| 2 Bedrooms | $2,880 |
| 3 Bedrooms | $3,990 |
| 4 Bedrooms | $4,810 |
| 5 Bedrooms | $5,580 |
| 6 Bedrooms | $6,250 |
| 7 Bedrooms | $6,750 |
| 8 Bedrooms | $7,088 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,880 | $641,709 | 0.45% | F |
| 3BR | $3,990 | $874,571 | 0.46% | F |
| 4BR | $4,810 | $975,373 | 0.49% | F |
| 5BR | $5,580 | $1,035,750 | 0.54% | F |
U.S. Census Bureau data (2024)
The ZIP code 95304, located in Tracy, CA, presents a dynamic rental market with specific characteristics that indicate a balance between supply and demand. The Fair Market Rent (FMR) for ZIP 95304 is set at $2330 for fiscal year 2024, while the actual market rent, as indicated by Zillow's ZORI, stands at $2,698. This suggests that the market rent slightly exceeds the government benchmark, indicating a robust demand for rental properties.
A key indicator of market health is the price-cut share, which in Tracy is only 0.1%. This low percentage implies that very few properties are being discounted, signaling strong seller confidence and limited need to lower prices to attract buyers. The median home value of $922,103 further supports this, showing a relatively stable housing market where property values have not significantly fluctuated.
With a 39.9% renter share, Tracy has a substantial portion of its population renting rather than owning homes. This high proportion of renters can exert long-term housing pressure on the market, as it suggests a consistent demand for rental units. Landlords and small-portfolio investors should consider this when evaluating potential returns on investment and the stability of rental income over time.
In summary, ZIP 95304 appears to be a market where demand meets supply effectively, with rental rates above the FMR and a low rate of price cuts indicating a healthy rental sector. The significant renter share points towards ongoing pressure on the rental market, making it a favorable environment for those looking to invest in rental properties.
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.