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 | $1,220 |
| 1 Bedroom | $1,320 |
| 2 Bedrooms | $1,730 |
| 3 Bedrooms | $2,310 |
| 4 Bedrooms | $2,710 |
| 5 Bedrooms | $3,144 |
| 6 Bedrooms | $3,521 |
| 7 Bedrooms | $3,803 |
| 8 Bedrooms | $3,993 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,320 | $294,716 | 0.45% | F |
| 2BR | $1,730 | $359,003 | 0.48% | F |
| 3BR | $2,310 | $415,181 | 0.56% | F |
| 4BR | $2,710 | $468,240 | 0.58% | F |
U.S. Census Bureau data (2024)
The ZIP code 95354 in Modesto, CA, stands out within Stanislaus County due to its unique demographic and economic characteristics. With a population of 25,684 residents, nearly half (49.6%) of the households in this area rent their homes, indicating a significant demand for rental properties. The median income in ZIP 95354 is $72,879, which is relatively modest compared to the median home value of $396,888, suggesting that homeownership remains a challenge for many residents.
In terms of voucher economics, landlords and small-portfolio investors should take note of the disparity between the Fair Market Rent (FMR) and the Zillow Observed Rent Index (ZORI). For fiscal year 2024, the FMR is set at $1,510, whereas the ZORI indicates a market rent of $1,762. This gap presents an opportunity for landlords who can leverage Section 8 vouchers to fill vacancies, though it also means accepting a slightly lower rent than the market average. The difference of $252 per month could be offset by the stability and predictability that comes with government-backed rental assistance programs.
Evaluating the overall data signature of ZIP 95354, it reads as stable rather than transitional. The consistent median income and home values suggest a settled community where the housing market is unlikely to experience sudden shifts. However, the high percentage of renters and the reliance on rental assistance indicate a need for affordable housing options. Landlords and investors should consider these factors when deciding to participate in the Section 8 program or develop rental properties in this ZIP code.
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.