Location: Modesto, CA | Metro: Modesto, CA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,260 |
| 1 Bedroom | $1,360 |
| 2 Bedrooms | $1,780 |
| 3 Bedrooms | $2,380 |
| 4 Bedrooms | $2,790 |
| 5 Bedrooms | $3,236 |
| 6 Bedrooms | $3,624 |
| 7 Bedrooms | $3,914 |
| 8 Bedrooms | $4,110 |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP 95386 (Waterford, CA, Stanislaus County) are straightforward. The SAFMR (Section 8 Area Fair Market Rent) for a two-bedroom apartment is set at $1460 for fiscal year 2024. This SAFMR is specifically tailored for this ZIP code, ensuring it reflects the local housing market conditions accurately.
In contrast, the local market rent for a two-bedroom unit averages $1,593 according to the latest Census ACS data. This indicates that landlords in ZIP 95386 may face a slight challenge in covering their rental costs solely through the Section 8 program.
A voucher payment under Section 8 consists of two parts: the tenant's portion and the utility allowance. Landlords receive a reimbursement from the government based on the SAFMR, which is capped at $1460 for a two-bedroom unit in this ZIP code. Tenants typically contribute 30% of their adjusted income towards rent, while the remainder is covered by the voucher.
The utility allowance is a fixed amount intended to cover the cost of utilities such as electricity, gas, water, and sewer. This allowance varies but is generally modest. For instance, if the utility allowance is $300, the total reimbursement a landlord might expect would be $1760 ($1460 rent + $300 utilities).
However, since the local market rent is higher at $1,593, the reimbursement gap emerges when comparing the SAFMR to the actual market rates. In this case, the gap is $133 per month ($1593 - $1460), meaning landlords will receive less than the market rent for a two-bedroom apartment. To summarize, landlords should anticipate a reimbursement of $1460 for rent plus any applicable utility allowances, resulting in a shortfall of $133 against the local market rent.
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.