Location: Stockton-Lodi, CA | Metro: Oakland-Fremont, CA HUD Metro FMR Area
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 | $2,290 |
| 1 Bedroom | $2,440 |
| 2 Bedrooms | $3,020 |
| 3 Bedrooms | $4,180 |
| 4 Bedrooms | $5,050 |
| 5 Bedrooms | $5,858 |
| 6 Bedrooms | $6,561 |
| 7 Bedrooms | $7,086 |
| 8 Bedrooms | $7,440 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $3,020 | $685,266 | 0.44% | F |
| 3BR | $4,180 | $639,309 | 0.65% | D |
| 4BR | $5,050 | $738,271 | 0.68% | D |
| 5BR | $5,858 | $806,984 | 0.73% | D |
U.S. Census Bureau data (2024)
ZIP 95377, located in Tracy, CA, within the larger Stockton-Lodi, CA MSA metro area, presents itself as a cash-flow anchor for a Section 8 portfolio strategy. The Federal Market Rent (FMR) for ZIP 95377 in fiscal year 2024 is set at $2,410, while the market rent stands at $2,967. This creates a spread of $557, indicating that properties in this ZIP code can be leased to Section 8 tenants without significant financial strain on the landlord.
The median home value in ZIP 95377 is $774,377, which is relatively high compared to the average property values in the broader region. However, the FMR is significantly lower than the market rent, providing a buffer for landlords who might otherwise face financial pressure due to the higher property costs. By anchoring a portion of their portfolio in ZIP 95377, landlords can ensure steady, reliable cash flow from Section 8 tenants, even if the market rent fluctuates.
The ZIP code also exhibits characteristics that make it less suitable as an appreciation play or diversifier. With a 0.2% price-cut share and a 31-day Days on Market (DOM), the appreciation potential is limited. These metrics suggest that the real estate market in Tracy, CA, is stable but not experiencing rapid growth. Similarly, the 25.4% renter share and median income of $158,158 do not indicate a strong need for rental diversification. While the renter share is notable, the median income suggests that there is a segment of the population capable of purchasing homes, reducing the overall demand for rentals.
In summary, ZIP 95377 is best suited as a cash-flow anchor within a Section 8 portfolio strategy. Landlords can leverage the $557 difference between FMR and market rent to secure a dependable revenue stream, balancing out the higher median home values and ensuring profitability and stability in their investment portfolio.
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.