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 | $1,460 |
| 1 Bedroom | $1,570 |
| 2 Bedrooms | $2,060 |
| 3 Bedrooms | $2,750 |
| 4 Bedrooms | $3,230 |
| 5 Bedrooms | $3,747 |
| 6 Bedrooms | $4,197 |
| 7 Bedrooms | $4,533 |
| 8 Bedrooms | $4,760 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,570 | $200,606 | 0.78% | D |
| 2BR | $2,060 | $339,396 | 0.61% | D |
| 3BR | $2,750 | $475,303 | 0.58% | F |
| 4BR | $3,230 | $614,823 | 0.53% | F |
| 5BR | $3,747 | $709,999 | 0.53% | F |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 95356 in Modesto, CA, for fiscal year 2024 is set at $1680. This figure represents the maximum amount that a landlord can charge for rent under the Section 8 program. It's important to note that this is not the actual rent you will receive, but rather the payment standard used by the housing authority to determine what a tenant can pay.
In comparison, the local median rent for a two-bedroom apartment in Modesto, CA, as indicated by the Zillow Observed Rental Index (ZORI), is approximately $2,194. This suggests that the market rent is higher than the Section 8 payment standard, meaning you would have to accept a lower rent if you decide to participate in the program.
The demand for rental properties in Modesto, CA, is strong, with renters comprising 32.4% of the total population. This indicates a significant portion of the market that could potentially benefit from the Section 8 program, increasing the likelihood of finding tenants who need your property.
Acquiring a property in this area can be costly, with an average price tag of around $524,396. While this might seem high, it's crucial to understand that the long-term stability and guaranteed income from the Section 8 program can offset the initial investment. The Housing Authority covers the difference between the tenant's contribution and the FMR, ensuring consistent payments.
Before making the decision to enter into a Section 8 agreement, verify that the property meets all local housing quality standards (HQS). These requirements ensure that the unit is safe, decent, and sanitary for occupancy. Failure to meet these standards can result in penalties or loss of participation in the program.
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.