Location: Stockton-Lodi, 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 | $1,320 |
| 1 Bedroom | $1,420 |
| 2 Bedrooms | $1,860 |
| 3 Bedrooms | $2,490 |
| 4 Bedrooms | $2,920 |
| 5 Bedrooms | $3,387 |
| 6 Bedrooms | $3,793 |
| 7 Bedrooms | $4,096 |
| 8 Bedrooms | $4,301 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,860 | $349,509 | 0.53% | F |
| 3BR | $2,490 | $454,935 | 0.55% | F |
| 4BR | $2,920 | $532,863 | 0.55% | F |
| 5BR | $3,387 | $608,391 | 0.56% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP 95367, located in Riverbank, California, within the Stockton-Lodi, CA MSA, reveals several key points for potential landlords and small-portfolio investors.
Firstly, the rent math does not work favorably for Section 8 participants. The Fair Market Rent (FMR) set at $1610 for the fiscal year 2024 is significantly lower than the market rent, which stands at $2,321 (ZORI). This means that landlords would receive less than half of the market rent through Section 8, making it unprofitable unless they can find other ways to offset the difference.
Secondly, regarding property acquisition, the median home value in ZIP 95367 is $486,966. However, the lack of data on days on market (DOM) and the low price-cut share of 0.2% suggest that homes are generally not staying on the market long enough to be heavily discounted. This implies that acquiring properties at a bargain may be challenging, as the market appears to be stable without significant price reductions.
Lastly, there is a notable tenant demand in the area. With a population of 25,593, 27.8% of residents are renters. This indicates a substantial pool of potential tenants, which could be beneficial for landlords willing to participate in the market outside of Section 8.
In summary, ZIP 95367 presents challenges for Section 8 landlords due to the disparity between FMR and market rents. Acquisition of properties is likely to be at higher costs given the median home value and stable market conditions. Despite these drawbacks, the presence of a sizeable rental market suggests that landlords who can afford to operate above the subsidized rates will have access to a steady stream of tenants. Therefore, the decision to invest should consider the financial implications of operating outside Section 8 parameters.
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.