San Jose, CA rental market report

The investor's view of San Jose: official FY2025 rents for the San Jose-Sunnyvale-Santa Clara, CA HUD Metro FMR Area, and what a standard 3-bedroom rental actually pencils at across price points — every figure computed by the same deterministic engine behind the analyzer.

FY2025 rent benchmarks (HUD Fair Market Rents)

Studio1 BR2 BR3 BR4 BR
$2,608/mo$2,975/mo$3,446/mo$4,477/mo$4,878/mo

Source: U.S. Department of Housing & Urban Development, FY2025. FMRs sit at the 40th percentile — treat them as floor benchmarks; renovated or well-located units often rent above.

What pencils in San Jose: 3BR buy-and-hold scenarios

Underwritten at the metro's $4,477/mo 3BR benchmark with 20% down, 7% interest, and a full operating-expense load (taxes, insurance, vacancy, maintenance, management):

Purchase priceMonthly cash flowDSCRCash-on-cashVerdict
$580,000-$836/mo0.73-7.5%NEGOTIATE
$670,000-$1,409/mo0.6-11%PASS
$760,000-$1,982/mo0.51-13.6%PASS

Read: at FY2025 benchmark rents, standard-financing buy-and-hold is challenging at these price points in San Jose — deals here need discounts, higher-rent units, or a different strategy (rent-by-room often changes the math entirely). Illustrative scenarios, not offers of advice — every real deal needs its own underwriting.

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