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 | $1,290 |
| 1 Bedroom | $1,390 |
| 2 Bedrooms | $1,820 |
| 3 Bedrooms | $2,430 |
| 4 Bedrooms | $2,850 |
| 5 Bedrooms | $3,306 |
| 6 Bedrooms | $3,703 |
| 7 Bedrooms | $3,999 |
| 8 Bedrooms | $4,199 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,390 | $299,916 | 0.46% | F |
| 2BR | $1,820 | $323,983 | 0.56% | F |
| 3BR | $2,430 | $425,533 | 0.57% | F |
| 4BR | $2,850 | $468,905 | 0.61% | D |
| 5BR | $3,306 | $561,817 | 0.59% | F |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 95358 in Modesto, CA, for fiscal year 2024 is set at $1,600. This figure represents the payment standard for Section 8 housing assistance in your area, which is the maximum amount the government will pay toward a tenant's rent. It does not represent the rent you can charge; it is the limit on the subsidy.
Comparing this to the local median rent of $1,594, as reported by the Census Bureau's American Community Survey, shows that the FMR closely aligns with market conditions. This suggests that if you participate in the Section 8 program, your rental income will be competitive with other non-subsidized properties in the same area.
Given that approximately 38.0% of households in Modesto are renters, there is a significant demand for affordable housing. The FMR helps ensure that a portion of these renters can access suitable housing through the Section 8 program.
If you are considering acquiring a property for a Section 8 rental, the average home price in Modesto is around $433,999. This figure represents the typical cost of purchasing a home in the area, which could be a potential investment opportunity for your portfolio.
Before making a final decision, it is crucial to verify that the property meets all the necessary requirements for participation in the Section 8 program. This includes ensuring that the unit is in good repair and meets the Housing Quality Standards (HQS) established by the U.S. Department of Housing and Urban Development (HUD).
To summarize, the FMR of $1,600 for ZIP 95358 ensures that you receive a fair subsidy for your Section 8 tenants, aligning closely with the local median rent of $1,594. With a substantial 38.0% of households being renters, there is a strong demand for affordable housing. The average home price of $433,999 provides a benchmark for the cost of entry into the market. However, the key step is to confirm that your property complies with HQS to avoid any issues with eligibility.
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.