Section 8 Fair Market Rent (FMR) for ZIP 91350 - 2027

Investment Score for ZIP 91350

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$2,820
1 Bedroom	$3,150
2 Bedrooms	$3,890
3 Bedrooms	$4,940
4 Bedrooms	$5,520
5 Bedrooms	$6,403
6 Bedrooms	$7,171
7 Bedrooms	$7,745
8 Bedrooms	$8,132

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$3,150	$372,477	0.85%	C
2BR	$3,890	$510,890	0.76%	D
3BR	$4,940	$755,151	0.65%	D
4BR	$5,520	$866,453	0.64%	D
5BR	$6,403	$1,077,303	0.59%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 91350 (Santa Clarita, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 91350 is set by HUD for 2026 as follows: - 0BR: $2420 - 1BR: $2710 - 2BR: $3380 - 3BR: $4290 - 4BR: $4770 To understand how these figures compare to actual rents, we need to consider that the FMR for a 2BR unit is $3380, which represents 28.9% of the median household income in Santa Clarita, CA. This indicates that the rent for a 2BR unit is relatively affordable compared to the average income level in the area. However, the actual rents in the market can be significantly higher. For instance, the Zillow median price for a 2BR home in this ZIP code is $524,290, which translates into a monthly mortgage payment of approximately $2,500 (assuming a 30-year fixed-rate mortgage at 4.5%). When factoring in property taxes, insurance, and maintenance costs, the total cost of ownership can easily exceed the FMR. Given the high price-to-FMR ratio of 12.9x, it suggests that landlords might find it challenging to charge rents that align with the FMR while still covering their expenses. Therefore, voucher holders face significant constraints in finding units that accept their vouchers and are within the FMR limits. #### Affordability & Renter Profile ZIP code 91350 has a population of 43,973, with 17.5% of residents being renters. The occupancy rate stands at 98.5%, indicating a very tight rental market. Given the median household income of $140,110, the majority of residents are likely homeowners who can afford the high cost of living in the area. The 2BR FMR of $3380 is only a small fraction of the median income, suggesting that renters in this ZIP code are likely to have above-average incomes. This tight market makes it difficult for lower-income individuals to find affordable housing options, especially those relying on Section 8 vouchers. The high median home value also implies that rental properties are often priced well above the FMR, making it less likely for landlords to accept Section 8 vouchers due to the financial constraints they impose. #### Investor Angle From an investor perspective, the ZIP code 91350 presents a mixed picture when considering cash flow and investment grade. The FMR for a 2BR unit is $3380, but the actual market rent is much higher, with the Zillow median price for a 2BR home translating to a potential rent of around $2,500 per month plus additional costs. This means that even if a landlord were to charge the FMR, they would still likely struggle to cover all their expenses. The high price-to-FMR ratio of 12.9x further underscores the challenge of achieving positive cash flow through Section 8 vouchers alone. Investors looking to focus solely on Section 8 tenants in this ZIP code would likely face difficulties in generating sufficient returns to justify the investment. #### Specific Actionable Insights 1. **Target Higher-Income Renters**: Given the high median income and the tight rental market, investors should consider targeting higher-income renters rather than relying solely on Section 8 vouchers. This could involve developing or renovating properties to attract tenants willing to pay above the FMR. 2. **Consider Mixed-Income Developments**: A strategy that combines Section 8 units with market-rate rentals could help balance the financial burden. By having a mix of both types of units, landlords can leverage the higher rents from market-rate tenants to offset the lower rents from Section 8 units. 3. **Focus on Smaller Units**: The FMR for smaller units (0BR and 1BR) is lower, potentially making them more attractive for landlords who want to participate in the Section 8 program. For example, a 0BR unit at $2420 might be easier to manage financially compared to a 2BR or larger unit. #### Bottom Line Based on the analysis, the recommendation for Section 8-focused investors in ZIP code 91350 is to **Skip** this market. The high price-to-FMR ratio and the tight rental market make it challenging to achieve positive cash flow using Section 8 vouchers alone. Investors should consider other ZIP codes with a better alignment between FMR and actual market rents, or adopt a mixed-income development approach to mitigate financial risks.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.