Location: Merced, CA | Metro: Merced, 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 | $1,010 |
| 1 Bedroom | $1,100 |
| 2 Bedrooms | $1,360 |
| 3 Bedrooms | $1,870 |
| 4 Bedrooms | $2,260 |
| 5 Bedrooms | $2,622 |
| 6 Bedrooms | $2,937 |
| 7 Bedrooms | $3,172 |
| 8 Bedrooms | $3,331 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,360 | $235,294 | 0.58% | F |
| 3BR | $1,870 | $294,274 | 0.64% | D |
| 4BR | $2,260 | $346,113 | 0.65% | D |
U.S. Census Bureau data (2024)
ZIP code 95365, located in Planada, CA, falls within the Merced, CA Metropolitan Statistical Area (MSA). Its Fair Market Rent (FMR) for 2024 is set at $1120, while the market rent stands at $949. The median home value is $291,249, and the renter share is 54.9%. These figures can be used to position 95365 within the broader context of the Merced MSA.
The FMR of $1120 for ZIP 95365 is higher than the market rent of $949, indicating that the subsidized rental rates are above what the market naturally demands. This suggests that properties in this ZIP could be attractive to tenants participating in the Section 8 program, as they might find it easier to secure housing at rates that exceed the typical market price.
The median home value of $291,249 is relatively low compared to many other areas within the MSA, which often see higher home values due to increased demand and development. A lower home value combined with a high renter share can signal a potential sweet spot for landlords and small-portfolio investors interested in Section 8 participation. It implies that there is a significant portion of the population who prefer renting over owning, and the lower property values make it feasible to acquire and manage rental units.
A 54.9% renter share is notably high, suggesting a robust rental market where a substantial number of residents are already renters. This high share of renters, coupled with the relatively low home values, could indicate an area where Section 8 vouchers are frequently utilized. Landlords in this ZIP code may benefit from a steady stream of potential tenants who rely on government subsidies to afford housing.
Based on these figures, ZIP 95365 appears to be a value pocket within the Merced MSA. It offers a combination of lower home values and a high renter share, making it an attractive location for those looking to invest in affordable rental properties. The disparity between the FMR and market rent also points towards a potential opportunity for landlords who can leverage the higher subsidy rates to ensure stable occupancy and income.
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.