Location: Mariposa County, CA | Metro: Merced, CA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,050 |
| 1 Bedroom | $1,110 |
| 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 |
U.S. Census Bureau data (2024)
The ZIP code 95369, located in La Grange, CA, is an ideal candidate for inclusion in a Section 8 portfolio strategy due to its characteristics as a cash-flow anchor. This designation is based on the spread between the Fair Market Rent (FMR) set by HUD for the fiscal year 2024 and the actual market rent in the area.
HUD has established the FMR for a one-bedroom unit in ZIP 95369 at $1200 for FY 2024. In contrast, the current market rent for similar units stands at approximately $910. This significant gap of $290 means that landlords participating in the Section 8 program can expect higher rental income compared to what they would receive from traditional market-rate tenants. This makes ZIP 95369 a strong cash-flow anchor within a broader investment portfolio.
The median home value in ZIP 95369 is $476,865, which indicates that the area is relatively stable in terms of property values. While there is no specific percentage given for price-cut shares or days on market (DOM), the lack of these metrics suggests that the housing market is not highly volatile, further supporting the idea that this area is suitable for steady, reliable cash flow.
Additionally, with a renter share of 43.9%, ZIP 95369 provides ample opportunity for landlords to find tenants. The median income of $75,750 ensures that there is a sufficient pool of potential Section 8 participants who meet the eligibility criteria for the program. This combination of factors makes ZIP 95369 a dependable choice for landlords seeking to secure consistent rental income through the Section 8 program.
In summary, ZIP 95369 should be considered as a cash-flow anchor within a Section 8 portfolio strategy due to its favorable spread between FMR and market rent, stable median home values, and a substantial renter share. These elements contribute to a predictable and profitable investment environment for landlords.
Data Sources: FMR data from HUD (2027). 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.