Location: Merced, CA | Metro: Merced, 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 | $1,120 |
| 1 Bedroom | $1,170 |
| 2 Bedrooms | $1,410 |
| 3 Bedrooms | $1,940 |
| 4 Bedrooms | $2,300 |
| 5 Bedrooms | $2,668 |
| 6 Bedrooms | $2,988 |
| 7 Bedrooms | $3,227 |
| 8 Bedrooms | $3,388 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,410 | $344,734 | 0.41% | F |
| 3BR | $1,940 | $395,266 | 0.49% | F |
| 4BR | $2,300 | $446,037 | 0.52% | F |
| 5BR | $2,668 | $511,116 | 0.52% | F |
U.S. Census Bureau data (2024)
ZIP code 95315 is located in the city of Delhi, California, a suburban area known for its quiet residential streets and family-friendly environment. The neighborhood has a total population of 13,598 residents, with 32.8% of them being renters. This indicates a moderate rental market presence, suggesting there is room for growth and opportunities for investors looking to tap into the rental segment. The median household income in this ZIP code stands at $71,352, which is relatively stable and provides a good foundation for a consistent rental market. Median home values are slightly higher at $412,918, reflecting a middle-class community where homeownership is valued.
Moving into the specifics of the rental market, the Fair Market Rent (FMR) for ZIP 95315 as set by HUD for fiscal year 2024 is $1,450. This figure represents the government's benchmark for rental affordability and is used to determine payment standards for housing assistance programs such as Section 8. In contrast, the actual market rent, according to Census ACS data, is $1,272. This discrepancy suggests that properties in ZIP 95315 can potentially be rented out at rates higher than the current market average, leveraging the Section 8 program's payment standard to attract tenants.
The practical implications for investors are significant. For hands-off operators who prefer to manage their properties through the Section 8 program, ZIP 95315 offers a stable and moderately priced rental market. These investors can benefit from the guaranteed rental income and the lower risk associated with the government-backed vouchers. On the other hand, for hands-on value-add buyers who aim to improve property conditions and increase rental income, the opportunity to charge closer to the FMR while still attracting subsidized tenants makes this ZIP code an attractive investment. By enhancing property amenities and maintaining high standards, these investors can command rents above the market average, thereby maximizing their returns on investment.
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.