Location: Stockton-Lodi, CA | Metro: Stockton-Lodi, CA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $900 |
| 1 Bedroom | $960 |
| 2 Bedrooms | $1,190 |
| 3 Bedrooms | $1,660 |
| 4 Bedrooms | $2,000 |
| 5 Bedrooms | $2,320 |
| 6 Bedrooms | $2,598 |
| 7 Bedrooms | $2,806 |
| 8 Bedrooms | $2,946 |
U.S. Census Bureau data (2024)
The ZIP code 95686 is situated in a neighborhood characterized by a relatively small population of 1,171 residents, with 42.8% of them being renters. The median income in this area stands at $52,109, indicating a middle-class community. The median home value is notably high at $559,749, suggesting that homeownership is quite expensive.
Moving into the realm of rental economics, the Fair Market Rent (FMR) for ZIP 95686 as of fiscal year 2024 is set at $1,370. In contrast, the average market rent, according to the Census ACS, is significantly lower at $884. This disparity between the FMR and the actual market rent presents an interesting opportunity for Section 8 investors.
Given these figures, ZIP 95686 would be well-suited for both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the higher FMR compared to the market rent means that properties could potentially receive higher rents through the Section 8 program without requiring extensive management efforts. On the other hand, for hands-on investors looking to add value, the gap between the actual market rent and the FMR indicates potential for increasing rental income by improving property quality or location appeal, thereby attracting tenants willing to pay closer to the FMR rates.
Investors should also consider the local tenant demand and the percentage of renters when deciding their strategy. With over 40% of the population renting, there is a substantial base of potential tenants, including those who might qualify for Section 8 assistance. The median income figure suggests that while not all residents will need housing vouchers, a significant portion may benefit from them.
In conclusion, ZIP 95686 offers a balanced environment for Section 8 investments, suitable for both passive and active investors. The economic conditions and demographics make it a viable option for those interested in leveraging the Section 8 program to enhance rental income.
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.