Location: Modesto, 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 | $1,360 |
| 1 Bedroom | $1,430 |
| 2 Bedrooms | $1,720 |
| 3 Bedrooms | $2,370 |
| 4 Bedrooms | $2,810 |
| 5 Bedrooms | $3,260 |
| 6 Bedrooms | $3,651 |
| 7 Bedrooms | $3,943 |
| 8 Bedrooms | $4,140 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,720 | $408,842 | 0.42% | F |
| 3BR | $2,370 | $461,537 | 0.51% | F |
| 4BR | $2,810 | $574,176 | 0.49% | F |
U.S. Census Bureau data (2024)
The ZIP code 95324, located in Hilmar, California, presents an interesting scenario for both tenants and landlords alike. The median household income here stands at $76,316, which is a solid figure, but it falls short when compared to the market rate for rental properties, which is $1,413 per month according to the Census Bureau's American Community Survey (ACS).
To put this into perspective, the monthly housing cost represents nearly 20% of the median household income. This means that tenants in Hilmar have a significant portion of their earnings dedicated to rent, leaving less disposable income for other necessities. Furthermore, the Federal Market Rent (FMR) for the area, set at $1,700 for fiscal year 2024, is even higher than the current market rate, indicating a potential increase in rental costs.
With 47.6% of the population being renters and a total population of 7,636, there is a notable competition among landlords to attract tenants. However, the affordability gap suggests that many households might struggle to meet the FMR, especially if they rely on Section 8 vouchers. These vouchers typically cover up to the FMR, making them a valuable option for tenants who cannot afford the full market rate out-of-pocket.
The takeaway for landlords is clear: while cash-paying tenants might be more desirable due to the simplicity of transactions and potentially higher rent payments, the reality of the affordability gap means that accepting Section 8 vouchers could be crucial for securing tenants. Landlords should consider the balance between voucher acceptance and setting competitive rates that do not exceed the financial capacity of local households. This approach will help ensure a steady stream of tenants and avoid prolonged vacancies.
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.