Section 8 Fair Market Rent (FMR) for ZIP 95380 - 2027

Investment Score for ZIP 95380

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	$1,180
1 Bedroom	$1,280
2 Bedrooms	$1,660
3 Bedrooms	$2,230
4 Bedrooms	$2,610
5 Bedrooms	$3,028
6 Bedrooms	$3,391
7 Bedrooms	$3,662
8 Bedrooms	$3,845

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,280	$320,467	0.4%	F
2BR	$1,660	$367,492	0.45%	F
3BR	$2,230	$444,456	0.5%	F
4BR	$2,610	$515,940	0.51%	F
5BR	$3,028	$617,466	0.49%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 95380 (Turlock, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for Turlock, CA, as of 2026, is set at $1630 for a two-bedroom unit. This figure represents 26.2% of the median household income in the area, which stands at $74,534. However, the actual rent for a two-bedroom unit in Turlock is significantly higher, with Zillow reporting a median price of $365,044. The price-to-FMR ratio is 18.7x, indicating that the actual rent is nearly 19 times the FMR. For voucher holders, this means that they would be severely constrained in finding housing that fits within their budget. Given the high actual rent compared to FMR, many voucher holders might struggle to find suitable accommodations, especially since the FMR is only a fraction of what landlords are charging. #### Affordability & Renter Profile Turlock has a population of 43,960, with 51.2% of residents being renters. This indicates a significant demand for rental properties, suggesting that the market is relatively tight. The occupancy rate of 94.7% further supports this notion, showing that there is little vacancy available for new tenants. With such a high percentage of renters and limited vacancy, it is likely that competition for affordable units is intense. Given the median household income of $74,534, the affordability of housing is a critical issue for many residents. The fact that the FMR for a two-bedroom unit is only $1630 while the actual rent is $365,044 suggests that the market is highly unaffordable for low-income households, particularly those relying on Section 8 vouchers. #### Investor Angle From an investor perspective, the ZIP code 95380 presents a challenging scenario when considering cash flow based solely on FMR. At the FMR of $1630 for a two-bedroom unit, investors would likely face difficulties achieving positive cash flow given the actual median rent of $365,044. This high price-to-FMR ratio implies that the rental market is overpriced relative to the FMR, making it difficult for investors to compete with market rates while adhering to the FMR guidelines. Additionally, the high rent-to-income ratio suggests that the market is not aligned with the financial capabilities of the majority of the local population, leading to potential challenges in tenant retention and property management. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should consider focusing on smaller units such as studios or one-bedroom apartments. The FMR for a one-bedroom unit is $1260, which is still far below the actual market rent but may offer better opportunities for positive cash flow compared to larger units. Investors could target areas where there is a higher concentration of single-person households or young professionals who might prefer smaller units at lower rents. 2. **Target Affordable Neighborhoods**: Within Turlock, there may be certain neighborhoods where the rent is closer to the FMR. Investors should conduct thorough neighborhood-level analyses to identify these pockets of affordability. By targeting these areas, investors can potentially attract Section 8 voucher holders and achieve positive cash flow while still offering competitive rents. 3. **Consider Renovation Projects**: Investors looking to acquire properties at lower prices might consider renovation projects. By purchasing older properties at a discount and renovating them to meet modern standards, investors can potentially command higher rents while still remaining within the FMR guidelines. This strategy requires careful planning and budgeting but can yield positive returns if executed correctly. #### Bottom Line Given the high actual rent compared to the FMR and the tight rental market, the recommendation for Section 8-focused investors is to **Skip** this ZIP code. The current market conditions make it extremely difficult to achieve positive cash flow while adhering to FMR guidelines. The high price-to-FMR ratio and the limited availability of affordable units suggest that the market is not well-suited for investors primarily interested in Section 8 vouchers. Instead, investors might want to explore other ZIP codes with more favorable price-to-FMR ratios and greater availability of affordable units.

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.