Section 8 Fair Market Rent (FMR) for ZIP 95376 - 2027

Investment Score for ZIP 95376

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,790
1 Bedroom	$1,910
2 Bedrooms	$2,370
3 Bedrooms	$3,280
4 Bedrooms	$3,960
5 Bedrooms	$4,594
6 Bedrooms	$5,145
7 Bedrooms	$5,557
8 Bedrooms	$5,835

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$2,370	$428,791	0.55%	F
3BR	$3,280	$560,432	0.59%	F
4BR	$3,960	$652,919	0.61%	D
5BR	$4,594	$758,405	0.61%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 95376 (Tracy, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 95376 is set by HUD for 2026. The FMRs are as follows: - 0BR: $1550 - 1BR: $1680 - 2BR: $2100 - 3BR: $2920 - 4BR: $3520 These FMRs represent the maximum amount that a Section 8 voucher holder can pay towards rent. However, it's important to note that actual rental prices in Tracy, CA, may differ significantly from these figures. For instance, the Zillow median price for a 2BR unit is $435,690, which translates to a monthly mortgage payment of approximately $2,500 assuming a 4.5% interest rate and a 30-year fixed mortgage. This means that landlords would need to charge around $2,500 per month to cover their mortgage payments, which is well above the $2100 FMR for a 2BR unit. This creates a significant constraint for voucher holders, who may find it difficult to secure housing that meets both their needs and the FMR limits. In practice, many landlords might not accept vouchers due to the higher administrative burden and lower rent compared to market rates. Consequently, voucher holders may face limited options, particularly for larger units like 3BR or 4BR, where the gap between FMR and market rent is even wider. #### Affordability & Renter Profile ZIP code 95376 has a population of 54,488, with 38.4% of residents being renters. The median household income is $102,555, indicating a relatively affluent community. However, the 2BR FMR represents only 24.6% of the median income, suggesting that renters, especially those relying on Section 8 vouchers, may struggle to afford housing in this area. Given the occupancy rate of 95.9%, the rental market appears to be quite tight. There is little vacancy, which could drive up rental prices further. This tight market combined with high median home values suggests that there is strong demand for rental properties, but the supply is constrained, making it challenging for low-income renters to find affordable housing. #### Investor Angle From an investor perspective, the ZIP code 95376 presents a mixed picture. The price-to-FMR ratio of 17.3x indicates that the median home value ($435,690) is significantly higher than the FMR for a 2BR unit ($2100). This high ratio implies that rental properties in Tracy are generally priced much higher than the FMR, which could make it difficult for investors to achieve positive cash flow if they rely solely on FMR-based rents. To determine if this ZIP code is cash-flow positive, we must consider the potential rental income versus the mortgage payment. Assuming a 2BR unit costs $435,690 and a landlord charges the Zillow median rent of $2,500 per month, the annual rental income would be $30,000. With a monthly mortgage payment of approximately $2,500, the annual mortgage cost would be $30,000. After accounting for property taxes, insurance, maintenance, and other expenses, the cash flow would likely be negative unless the landlord can charge significantly more than the FMR. In terms of investment grade, ZIP code 95376 would be considered a moderate risk. While the rental market is tight and there is strong demand, the high price-to-FMR ratio suggests that achieving positive cash flow through Section 8 vouchers alone would be challenging. Investors should carefully evaluate their ability to manage properties and potentially charge higher rents to non-voucher tenants. #### Specific Actionable Insights 1. **Target Larger Units**: Given the high median income and tight rental market, investors might consider focusing on larger units such as 3BR or 4BR homes. Although the FMR for these units is also below market rates, the higher rent potential could help offset the initial investment costs. For example, a 3BR unit with an FMR of $2920 might still attract non-voucher tenants willing to pay closer to the market rate of $3,000 or more. 2. **Diversify Tenant Base**: To mitigate the risk of relying solely on Section 8 voucher holders, investors should aim to diversify their tenant base. This could include attracting tenants who are willing to pay market rates, which are substantially higher than the FMR. By doing so, investors can ensure a more stable and positive cash flow. #### Bottom Line For Section 8-focused investors, ZIP code 95376 (Tracy, CA) presents a challenging environment. The high price-to-FMR ratio and tight rental market suggest that achieving positive cash flow through FMR-based rents alone would be difficult. Therefore, the recommendation is to **Skip** this ZIP code for pure Section 8 investments. Instead, investors should consider areas with lower price-to-FMR ratios or focus on diversifying their tenant mix to include non-voucher holders willing to pay market rates.

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.