Section 8 Fair Market Rent (FMR) for ZIP 95336 - 2027

Investment Score for ZIP 95336

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,640
1 Bedroom	$1,740
2 Bedrooms	$2,160
3 Bedrooms	$2,990
4 Bedrooms	$3,610
5 Bedrooms	$4,188
6 Bedrooms	$4,691
7 Bedrooms	$5,066
8 Bedrooms	$5,319

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$2,160	$519,008	0.42%	F
3BR	$2,990	$498,740	0.6%	F
4BR	$3,610	$579,415	0.62%	D
5BR	$4,188	$696,412	0.6%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 95336 (Manteca, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for Manteca, CA (ZIP 95336), as per the 2026 data, is set at $1920 for a two-bedroom unit. This figure represents 25.8% of the median household income in the area, which stands at $89,172. However, the actual rental market price for a two-bedroom unit is significantly higher, with the Zillow median price being $525,320. This translates into a price-to-FMR ratio of 22.8x, indicating that the actual market rent is approximately 22.8 times the FMR. This substantial disparity means that Section 8 voucher holders face significant constraints when trying to find suitable housing. The FMR is intended to reflect the average market rent for decent, safe, and sanitary housing, but in Manteca, it falls far short of the actual market rates. For instance, a voucher holder looking for a two-bedroom unit would need to find a landlord willing to accept a rent of $1920, which is only about 8.5% of the median home value in the area. This makes it challenging for voucher holders to secure housing, as landlords may prefer higher-paying tenants or those who can afford market-rate rents. #### Affordability & Renter Profile In Manteca, 29.5% of households are renters, and the occupancy rate is 94.4%, suggesting a relatively tight rental market. Given the high median home value and the fact that many renters are likely to be low-income families, affordability is a significant concern. The median household income of $89,172 implies that the majority of residents have a moderate to upper-middle-class income level. However, the 29.5% of renters represent a segment of the population that may struggle to find affordable housing options. The FMR for a two-bedroom unit at $1920 is only a small fraction of the median home value, making it difficult for renters to find units that fall within their budget. Additionally, the high price-to-FMR ratio indicates that the market is not oversupplied; rather, it is highly competitive, with limited options available for those relying on Section 8 vouchers. #### Investor Angle From an investor's perspective, the ZIP code 95336 presents both opportunities and challenges. The FMR for a two-bedroom unit is $1920, which is well below the actual market rent. However, the potential for cash flow depends on the willingness of landlords to accept these lower rents. If an investor were to purchase a property for around $525,320 and rent it out at the FMR, they would need to ensure that the property's operating expenses and mortgage payments do not exceed the FMR. Given the high price-to-FMR ratio, it is unlikely that an investor would achieve positive cash flow by renting at the FMR unless they can significantly reduce operating costs or secure favorable financing terms. The investment grade for this ZIP code would be considered low due to the limited demand for properties rented at FMR levels. Investors should carefully evaluate the potential for long-term appreciation and consider diversifying their portfolio to include other types of rental properties that might offer better cash flow. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors might consider focusing on smaller units such as one-bedroom or studio apartments. The FMR for a one-bedroom unit is $1540, which is still a fraction of the median home value but may be more attractive to voucher holders compared to larger units. This could potentially increase the likelihood of finding tenants willing to pay the FMR. 2. **Target Lower-Priced Properties**: While the median home value is $525,320, there may be opportunities to purchase properties at a discount. Investors should look for distressed properties or those in less desirable locations where the market rent is closer to the FMR. This could help achieve positive cash flow while still providing affordable housing options for voucher holders. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP 95336 is to **skip** this market. The high price-to-FMR ratio and the limited number of renters who can afford market-rate rents make it challenging to achieve positive cash flow. Instead, investors should consider markets with a lower price-to-FMR ratio or where the median home value is closer to the FMR, ensuring a better match between the actual market conditions and the needs of voucher holders.

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.