Section 8 Fair Market Rent (FMR) for ZIP 95382 - 2027

Location: Modesto, CA | Metro: Modesto, CA MSA

Investment Score for ZIP 95382

Monthly Rent (2BR)

$2,020

Median Price (2BR)

$375,513

1% Rule

0.54%

Annual Yield

6.46%

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	$1,430
1 Bedroom	$1,540
2 Bedrooms	$2,020
3 Bedrooms	$2,700
4 Bedrooms	$3,170
5 Bedrooms	$3,677
6 Bedrooms	$4,118
7 Bedrooms	$4,447
8 Bedrooms	$4,669

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
2BR	$2,020	$375,513	0.54%	F
3BR	$2,700	$471,170	0.57%	F
4BR	$3,170	$576,444	0.55%	F
5BR	$3,677	$679,887	0.54%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

39,083

Median Household Income

$95,282

Housing Units

14,118

Renter Percentage

37.3%

Occupancy Rate

97.5%

Renter Occupied

5,134

The economics of Section 8 housing in ZIP 95382, Turlock, CA, involve understanding the balance between the Subsidized Area Fair Market Rent (SAFMR) and the local market rent. For a two-bedroom apartment, the SAFMR for FY 2024 is set at $1720, which is the specific rate for this ZIP code. This means landlords must price their units at or below this amount to be eligible for the program.

The local market rent, measured by the Zillow Observed Rent Index (ZORI), stands at $2,480 for a similar two-bedroom unit. Landlords often wonder how much they can expect to receive when a tenant uses a Section 8 voucher. Here's a breakdown:

Tenant Portion: Tenants typically pay 30% of their adjusted income towards rent. If we assume an average adjusted income of $1,500, the tenant would contribute $450 per month.
Voucher Reimbursement: The government will cover the difference between the tenant's contribution and the SAFMR, up to $1720. Therefore, if the tenant pays $450, the government would reimburse the landlord $1270 ($1720 - $450).
Utility Allowances: Utility allowances vary but generally do not exceed $1720. These allowances are intended to help cover electricity, gas, water, and sewer costs. However, they are not directly paid to the landlord and are managed by the tenant.

Given these factors, landlords in ZIP 95382 who participate in the Section 8 program for a two-bedroom unit can expect to receive a total of $1720 per month. This includes both the tenant's payment and the government's reimbursement. The typical reimbursement gap in this scenario is $760 ($2,480 - $1720), meaning landlords receive $760 less than the local market rent for a two-bedroom unit.

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.