Real Estate Investing in Merced, California (95340)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 95340 (Merced, CA)? Our answer, based on the numbers below.
Proceed carefully. Weak appreciation or affordability makes this a harder case for most buyers.
A middle-of-the-road market. Workable, but the best opportunities may be nearby ZIPs rather than this one.
- Tenant-protective state: Landlord rating 1.0/5 — slower evictions, more regulations.
- Higher unemployment: 8.5% unemployment — tenant risk signal.
What’s happening in Merced, CA (95340)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 95340 Merced
ZIP 95340 in Merced, CA carries a durable set of headwinds. Home values near $406K and rents of $1,795/mo sit inside a market where underwriting has to be tight.
Distressed markets are won on execution, not on spreadsheets. ZIP 95340 reflects the profile where tenant screening, deferred maintenance, and local relationships determine the outcome.
Within CA, ZIP 95340 trails on several market indicators that neighboring Merced County submarkets outperform. The gap is real and sturdy enough to shape underwriting.
Demographically, 95340 is a market where tenant selection matters more than unit finishes. Operators who understand that tend to do fine; those who do not tend to learn why the ZIP trades at a discount.
trends toward the ZIP is not uninvestable, but it is unforgiving. Section 8 landlords, local operators, and specialized value-add funds are the investor types that tend to succeed.
Here's what matters if you're considering buying a home in Merced:
Property Strategy for 95340
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $287,494 | $1,400 | 3.5% | +6.6% | $143,747 |
| 3BR | $384,049 | $1,930 | 3.6% | +6.5% | $128,016 |
| 4BR | $475,775 | $2,330 | 3.5% | +6.1% | $118,944 |
| 5BR | $546,412 | — | — | +5.8% | $109,282 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 95340 Compare?
| Metric | 95340 | Merced | Merced, CA | California |
|---|---|---|---|---|
| Home Value | $406,091 | $238,482 | N/A | $761,003 |
| 5-Year CAGR | 3.1% | 3.3% | N/A | 5.7% |
| Avg Rent | $1,795 | $1,799 | N/A | - |
| Cap Rate | 3.5% | 3.5% | - | - |
Similar ZIPs Within 25 Miles
Compare other nearby markets to see if a neighbor offers a better fit.
Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 95340 (Merced, CA). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $406,091 |
| Monthly Rent | $1,795 |
| Price-to-Rent | 18.9:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 5.3% |
| Cap Rate | 3.5% |
| 5-Year IRR | 6.5% |
📈 Home Appreciation
| 1-Year | +0.5% ▲ |
| 3-Year CAGR | +1.6% ▲ |
| 5-Year CAGR | +3.1% ▲ |
| 10-Year CAGR | +6.7% ▲ |
🏠 Rent Trends
| 1-Year | -6.2% ▼ |
| 3-Year CAGR | +1.3% ▲ |
| 5-Year CAGR | N/A |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (3.5%). Financing reduces your cash-on-cash return below the cap rate. Markets like this may still make sense as IRR plays — factoring in appreciation, depreciation, and a future refinance when rates drop.
Run an IRR Analysis →⚠️ Risk Signals
Composite view of factors that can impact a ZIP's stability and your downside risk.
Demographics in 95340
Population: 38,045
Crime & Safety
Crime & Safety Data Coming Soon
We're integrating comprehensive crime statistics including violent crime rates, property crime, and safety scores to help you make informed investment decisions.
Expected: Q1 2025
🎓 Schools in 95340
Schools in This ZIP Code
About Repit School Scores
Traditional school ratings rely heavily on standardized test scores, which often reflect family income more than school quality. Repit takes a different approach.
We evaluate schools based on factors that research shows actually impact educational outcomes:
- Class Size — Smaller classes mean more individual attention
- School Funding — Resources available for programs, staff, and facilities
- Community Factors — Neighborhood characteristics that influence student success
- School Environment — Size, type, and structure
Scores are updated annually using federal education data.
🎓 Nearby Colleges & Universities
Investor Insight: With 4,493 students living off-campus nearby, this area has strong rental demand from the college population.
Frequently Asked Questions
Are homes affordable in Merced, CA?
Expect median prices around $406K in Merced, CA. The market has run at a 0.0% 5-year CAGR, so entry costs have been reliable.
Is CA a landlord-friendly state?
CA law tenant-protective for landlords, and Merced inherits those rules. Investors should still review local ordinances for rental licensing.
Is Merced, CA better for rentals, flips, or BRRRR?
The best-fit strategy in Merced, CA is careful cash-flow rentals with hands-on management. That approach the rent and price profile of the market.
Do landlords face vacancy issues in Merced, CA?
Occupancy in Merced, CA runs even-keeled with elevated vacancy. Well-priced units at $1,795/mo lease on reasonable timelines.
Does house hacking make sense in Merced, CA?
For house hackers, Merced, CA is a challenging. The $1,795/mo rent on a unit helps defray the mortgage on a $406K property.
You know 95340 now. You don’t know where it ranks.
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How 95340 ranks in Merced, CA
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