Location: Modesto, 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 | $1,130 |
| 1 Bedroom | $1,230 |
| 2 Bedrooms | $1,590 |
| 3 Bedrooms | $2,200 |
| 4 Bedrooms | $2,550 |
| 5 Bedrooms | $2,958 |
| 6 Bedrooms | $3,313 |
| 7 Bedrooms | $3,578 |
| 8 Bedrooms | $3,757 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,200 | $555,852 | 0.4% | F |
U.S. Census Bureau data (2024)
The ZIP code 95323, located within the Modesto, CA Metropolitan Statistical Area (MSA), has several characteristics that distinguish it from other ZIP codes in the region. Its Fair Market Rent (FMR) for FY 2024 is set at $1230, which is higher than the average market rent of $1,011, indicating that federally subsidized rents are above what the market typically offers. This suggests that there may be a higher demand for rental properties in this area, possibly due to its proximity to desirable amenities or employment centers.
The median home value in ZIP 95323 stands at $612,238, which is notably higher than the typical home values found in most ZIP codes within the Modesto MSA. This figure points towards a relatively affluent neighborhood where property values are significantly above average. However, the renter share of 35.5% is also higher than the typical percentage seen in other parts of the MSA, suggesting that despite the higher home values, a substantial portion of residents prefer renting over owning.
When considering these factors together, ZIP 95323 appears to be a premium sub-market within the Modesto MSA. The combination of high FMRs and elevated home values indicates a strong rental market with a preference for federally assisted housing options. Despite the premium nature of the housing stock, the significant renter share might signal an opportunity for landlords and small-portfolio investors interested in Section 8 properties, as it suggests a concentration of tenants who qualify for government subsidies.
To further analyze if 95323 is a value pocket or simply a premium sub-market, we must consider the local job market, school quality, and access to services. High renter shares in areas with below-average home values often indicate a Section 8 sweet spot, but since 95323's home values are above average, it leans more towards being a premium sub-market where both renters and homeowners coexist in a higher-value environment.
In summary, ZIP 95323 offers a blend of high rental subsidies and premium property values, making it an interesting market segment for investors looking to capitalize on the demand for rental properties while benefiting from the higher overall value of the area.
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.