Location: Stockton-Lodi, CA | Metro: Stockton-Lodi, 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 | $2,130 |
| 1 Bedroom | $2,270 |
| 2 Bedrooms | $2,810 |
| 3 Bedrooms | $3,890 |
| 4 Bedrooms | $4,700 |
| 5 Bedrooms | $5,452 |
| 6 Bedrooms | $6,106 |
| 7 Bedrooms | $6,594 |
| 8 Bedrooms | $6,924 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,810 | $456,590 | 0.62% | D |
| 3BR | $3,890 | $529,452 | 0.73% | D |
| 4BR | $4,700 | $640,407 | 0.73% | D |
| 5BR | $5,452 | $744,787 | 0.73% | D |
U.S. Census Bureau data (2024)
The classification of ZIP 95330, located in Lathrop, CA, hinges on the interplay between its yield potential and stability metrics. For yield analysis, consider the Federal Market Rent (FMR) of $2,160 for the fiscal year 2024, compared against the local market rent of $3,015. This indicates a significant gap, suggesting that properties in this area could potentially be rented out at higher rates than the FMR, thereby increasing yield for landlords who qualify for subsidies under the Section 8 program.
However, the median home value of $645,819 suggests that capital investment in this market is substantial. For those looking to maximize returns through rental income alone, the disparity between FMR and market rents provides an opportunity to leverage the subsidy while charging market rates, thus boosting overall yield.
Regarding stability, the ZIP code has a relatively low percentage of renters at 15.1%, which implies a smaller pool of potential tenants. Additionally, the median household income of $125,421 offers insight into the economic health of the area. While this figure is not indicative of the typical renter's income, it does suggest a broader economic context that supports a stable housing market.
The lack of data on days on market (DOM) makes it challenging to assess the speed at which properties can be leased. However, given the low percentage of renters, landlords might face challenges in finding suitable tenants quickly, which could impact cash flow stability.
In summary, ZIP 95330 presents a scenario that leans towards being a steady-cashflow zone. The high median home value and the presence of a decent income level support long-term investment strategies rather than short-term flips. Despite the lower renter population percentage, the ability to charge above FMR rates and the economic stability indicated by median income make this area attractive for landlords seeking consistent returns over time.
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.