Section 8 Fair Market Rent (FMR) for ZIP 95337 - 2027

Investment Score for ZIP 95337

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	$1,860
1 Bedroom	$1,990
2 Bedrooms	$2,460
3 Bedrooms	$3,410
4 Bedrooms	$4,110
5 Bedrooms	$4,768
6 Bedrooms	$5,340
7 Bedrooms	$5,767
8 Bedrooms	$6,055

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	$2,460	$391,140	0.63%	D
3BR	$3,410	$568,895	0.6%	F
4BR	$4,110	$659,313	0.62%	D
5BR	$4,768	$729,904	0.65%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 95337 (Manteca, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for Manteca, CA (ZIP 95337), as per the 2026 figures, is set at $2090 for a two-bedroom unit. This amount represents 21.4% of the median household income of $117,137. However, the actual rental market in Manteca is significantly higher, with Zillow reporting a median price of $394,527 for a two-bedroom property. This translates into a price-to-FMR ratio of 15.7x, indicating that the market rents are substantially above the FMR levels. For voucher holders, this means that finding affordable housing within the FMR guidelines can be challenging. The voucher program typically covers up to the FMR, but landlords may not be willing to accept a rent that is so much lower than the market rate. Consequently, voucher holders might face difficulties securing housing that fits their budget, especially in a competitive market like Manteca. #### Affordability & Renter Profile In ZIP 95337, 26.1% of households are renters, which suggests a moderate demand for rental properties. Given the occupancy rate of 96.9%, it indicates that the rental market is relatively tight, with few vacancies available. The high median household income of $117,137 implies that many residents have the financial capability to afford market-rate rentals. However, the 26.1% of renters likely includes a mix of individuals and families who may struggle to find affordable housing options. The FMR for a two-bedroom unit at $2090 is only 21.4% of the median income, suggesting that it is indeed affordable for most residents. Nevertheless, the actual market rents are far beyond this level, making it difficult for those relying solely on the voucher program to secure suitable housing. This tight market condition can lead to increased competition among renters, potentially driving up rental prices further. #### Investor Angle From an investor perspective, the ZIP code 95337 presents a mixed picture. While the market rents are high, the FMR levels are significantly lower. For example, a two-bedroom unit has an FMR of $2090, whereas the market median price is $394,527. This disparity means that if an investor aims to cater specifically to Section 8 voucher holders, they must ensure that their rental rates align with the FMR to remain eligible for the program. Given the high market rents, it is unlikely that many landlords will accept the FMR rates, leading to limited opportunities for cash flow positive investments strictly within the FMR range. However, there may still be some potential for positive cash flow if investors can find properties below the market median price and negotiate with tenants who have vouchers. The investment grade in this area would be considered medium to low for Section 8-focused investors due to the significant gap between FMR and market rents. Investors should carefully evaluate the local rental market dynamics and consider the possibility of accepting a mix of market-rate and voucher tenants to maximize profitability. #### Specific Actionable Insights 1. **Target Lower-Rent Properties**: Investors should focus on acquiring properties where the rental rates are closer to the FMR levels. For instance, a two-bedroom unit priced around $2090 could attract both voucher holders and other low-income renters, ensuring a steady stream of income while remaining within the FMR guidelines. 2. **Consider Mixed Tenancy**: To improve cash flow, investors might want to consider a strategy of mixed tenancy. This involves renting out part of the units to voucher holders and the rest to market-rate tenants. For example, a three-bedroom unit with an FMR of $2910 could be rented out to a voucher holder, while a four-bedroom unit with an FMR of $3510 could be rented to a market-rate tenant, balancing the overall income. 3. **Evaluate Property Values**: Given the high market median price of $394,527 for a two-bedroom unit, investors should conduct thorough valuations to ensure they are purchasing properties at reasonable prices. Overpaying for a property could result in negative cash flow even when renting at FMR levels. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP 95337 (Manteca, CA) is to **Skip**. The significant gap between the FMR and market rents makes it challenging to achieve positive cash flow strictly through the voucher program. Additionally, the tight market conditions and high occupancy rate suggest that there may be limited availability of properties that fit within the FMR guidelines. Investors looking to enter this market should consider alternative strategies or areas where the FMR is closer to the actual market rents.

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.