Merced County, CA: Fair Market Rent 2027 and Income Limits

Official HUD figures for landlords and renters, effective October 1, 2026 (rents) and May 1, 2026 (income limits).

$1,5172-bedroom FMR, FY2027

$1,2621-bedroom FMR, FY2027

$77,70080% income limit, family of 4 (FY2026)

$75,800Median family income (FY2026)

The FY2027 Fair Market Rent for a two-bedroom unit in Merced County is $1,517 a month, up 0.9% from $1,503 in FY2026. Merced County belongs to the Merced, CA MSA FMR area, so the same figures apply across that area. FMRs are gross rents: rent plus all tenant-paid utilities except phone, cable and internet.

Fair market rent in Merced County by bedroom count

Unit size	FY2027 FMR	FY2026 FMR	Change	Payment standard range (90–110%)
Studio	$1,200	$1,116	+7.5%	$1,080 – $1,320
1 bedroom	$1,262	$1,213	+4.0%	$1,136 – $1,388
2 bedrooms	$1,517	$1,503	+0.9%	$1,366 – $1,668
3 bedrooms	$2,087	$2,067	+1.0%	$1,879 – $2,295
4 bedrooms	$2,477	$2,503	−1.0%	$2,230 – $2,724

Source: HUD Fair Market Rents FY2027 (effective October 1, 2026) and FY2026 (revised file), details.

What can a landlord charge a Section 8 tenant here?

The FMR is not a cap on what you can ask on the open market. For a Housing Choice Voucher tenant, the local housing authority sets a payment standard, normally between 90% and 110% of the FMR (or of the ZIP-level Small Area FMR where those apply). For a two-bedroom unit in Merced County that is typically $1,366 to $1,668 including utilities. You can charge more than the payment standard if the rent passes the housing authority's rent-reasonableness test and, at move-in, the tenant's share stays within 40% of their adjusted monthly income. Ask the housing authority for its current payment standard schedule.

California has a statewide cap on rent increases. 5% plus regional inflation, never more than 10% in 12 months. For increases from Aug 1, 2026: 8.1% to 8.8% depending on the county. Calculate the maximum increase for California →

Can local renters afford the fair market rent?

$50,208median income of renter households

$1,343Median gross rent, all units

32%Rent-to-income ratio (median rent ÷ median renter income)

52%of renter households pay 30% or more of income on rent

At the 30% rule, a renter household earning the local median of $50,208 can afford about $1,255 a month including utilities. The FY2027 two-bedroom Fair Market Rent of $1,517 is $262 (20.9%) more than that. To rent a two-bedroom at the FMR, a household needs $60,680 a year under the 30% rule, or $54,612 under the common landlord rule that income must be three times the rent.

Merced County, ACS 2020–2024	Estimate ± MOE
Median gross rent (rent + utilities)	$1,343 ±$27
Median income of renter households	$50,208 ±$2,483
Renters paying 30% or more of income (cost-burdened)	51.9% ±2.8
Renters paying 50% or more (severely cost-burdened)	27.1% ±2.1
Renter households (where the share can be computed)	35,813

Change since 2015–2019

	ACS 2015–2019	ACS 2020–2024	Change
Median gross rent	$1,021	$1,343	+31.5%
Median renter household income	$38,741	$50,208	+29.6%
Renters paying 30%+ of income	50.6%	51.9%	+1.3 pts

Rent-to-income calculator: does an applicant qualify? → · Most affordable counties to rent in this state →

Source: U.S. Census Bureau, American Community Survey 5-Year Estimates 2020–2024 and 2015–2019 (tables B25064, B25119, B25070). ± = margin of error at 90% confidence. Dollar figures are not adjusted for inflation.

Small Area FMRs by ZIP code (FY2027)

In metro areas HUD also publishes ZIP-level Small Area Fair Market Rents. Housing authorities in designated areas must use them for voucher payment standards; others may opt in. Here the two-bedroom SAFMR ranges from $1,360 to $1,860 depending on the ZIP code.

All 27 ZIP codes in this FMR area

ZIP	0 BR	1 BR	2 BR	3 BR	4 BR
93610	$1,180	$1,180	$1,360	$1,880	$2,270
93620	$1,220	$1,220	$1,500	$2,090	$2,400
93622	$1,220	$1,220	$1,500	$2,090	$2,400
93635	$1,390	$1,460	$1,760	$2,420	$2,870
93661	$1,200	$1,260	$1,520	$2,090	$2,480
93665	$1,160	$1,220	$1,470	$2,020	$2,390
95301	$1,120	$1,180	$1,420	$1,950	$2,330
95303	$1,010	$1,100	$1,360	$1,870	$2,260
95312	$1,010	$1,100	$1,360	$1,870	$2,260
95315	$1,120	$1,170	$1,410	$1,940	$2,300
95316	$1,130	$1,230	$1,600	$2,200	$2,550
95317	$1,010	$1,100	$1,360	$1,870	$2,260
95322	$1,180	$1,240	$1,590	$2,200	$2,550
95324	$1,360	$1,430	$1,720	$2,370	$2,810
95333	$1,010	$1,100	$1,360	$1,870	$2,260
95334	$1,320	$1,390	$1,670	$2,300	$2,730
95340	$1,120	$1,180	$1,420	$1,950	$2,320
95341	$1,150	$1,210	$1,460	$2,010	$2,380
95343	$1,200	$1,260	$1,520	$2,090	$2,480
95344	$1,200	$1,260	$1,520	$2,090	$2,480
95348	$1,470	$1,550	$1,860	$2,560	$3,040
95360	$1,130	$1,230	$1,590	$2,200	$2,550
95365	$1,010	$1,100	$1,360	$1,870	$2,260
95369	$1,050	$1,110	$1,360	$1,870	$2,260
95374	$1,010	$1,100	$1,360	$1,870	$2,260
95380	$1,180	$1,280	$1,660	$2,230	$2,610
95388	$1,010	$1,100	$1,360	$1,870	$2,260

Source: HUD FY2027 Small Area FMRs (effective October 1, 2026).

HUD income limits for Merced County (FY2026)

Income limits decide who qualifies for Section 8 vouchers, public housing and most HUD-assisted units. The area median family income is $75,800 (FY2025: $84,000, −9.8%). Small figures under each limit show the change from FY2025.

Household size	1 person	2 people	3 people	4 people	5 people	6 people	7 people	8 people
Extremely low income (30%)	$20,450 +3.5%	$23,350 +3.5%	$27,320 +2.5%	$33,000 +2.6%	$38,680 +2.7%	$44,360 +2.8%	$50,040 +2.9%	$55,720 +2.9%
Very low income (50%)	$34,000 +3.3%	$38,850 +3.3%	$43,700 +3.3%	$48,550 +3.4%	$52,450 +3.3%	$56,350 +3.4%	$60,250 +3.4%	$64,100 +3.4%
Low income (80%)	$54,400 +3.4%	$62,200 +3.5%	$69,950 +3.5%	$77,700 +3.5%	$83,950 +3.5%	$90,150 +3.4%	$96,350 +3.4%	$102,600 +3.5%

The 30% limit is HUD's “extremely low income” limit: the higher of 30% of median income or the federal poverty guideline, but never above the 50% limit. That is why it can rise faster than 30% of median for larger households. Tax-credit (LIHTC) properties use separate Multifamily Tax Subsidy Project limits.

Source: HUD Section 8 Income Limits FY2026 (effective May 1, 2026) and FY2025, details.