Section 8 Fair Market Rent (FMR) for ZIP 91387 - 2027

Investment Score for ZIP 91387

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	$2,760
1 Bedroom	$3,080
2 Bedrooms	$3,800
3 Bedrooms	$4,820
4 Bedrooms	$5,390
5 Bedrooms	$6,252
6 Bedrooms	$7,002
7 Bedrooms	$7,562
8 Bedrooms	$7,940

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
2BR	$3,800	$438,764	0.87%	C
3BR	$4,820	$709,513	0.68%	D
4BR	$5,390	$878,929	0.61%	D
5BR	$6,252	$1,083,671	0.58%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 91387 (Santa Clarita, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 91387 is set by HUD for 2026 as follows: - 0BR: $2330 - 1BR: $2610 - 2BR: $3250 - 3BR: $4120 - 4BR: $4590 These figures represent the maximum rent that a Section 8 voucher holder can pay based on the number of bedrooms required. However, it is important to note that the actual rents in the area significantly exceed these FMRs. For instance, the Zillow median price for a 2BR unit is $453,698, which translates to a monthly rental cost of approximately $3781 based on typical mortgage rates and property taxes. This means that the price-to-FMR ratio for a 2BR unit is 11.6x, indicating that the actual rental costs are much higher than what the vouchers cover. Given this context, voucher holders face significant constraints. The FMR for a 2BR unit is $3250, but the actual rental cost is nearly $731 higher. This discrepancy makes it challenging for voucher holders to find affordable housing in Santa Clarita, especially since they must also consider utilities and other living expenses. #### Affordability & Renter Profile ZIP code 91387 has a population of 46,869, with 35.1% of residents being renters. The occupancy rate stands at 96.3%, suggesting a relatively tight market where most units are occupied. The median household income in the area is $117,969, which provides some insight into the economic profile of the residents. The FMR for a 2BR unit is $3250, which represents 33.1% of the median income. This indicates that while the FMR is relatively affordable for the average resident, it is still a substantial portion of their income. Given the high actual rental costs, it is likely that many renters in this ZIP code are middle-income earners who can afford the higher rents without relying on government assistance. The tight market and high actual rents suggest that there is a limited supply of units available at the FMR levels. Therefore, voucher holders may struggle to find suitable housing, leading to increased competition among renters and potentially driving up rental prices further. #### Investor Angle From an investor's perspective, the ZIP code 91387 presents a mixed picture when considering cash flow and investment grade. The FMR for a 2BR unit is $3250, while the actual rental cost is around $3781. This implies that landlords who accept Section 8 vouchers would be operating at a loss if they were to charge the FMR. However, the high actual rental prices indicate that there is strong demand for rental properties in the area. Investors who do not rely solely on Section 8 vouchers could potentially achieve positive cash flow by charging closer to the actual market rates. The investment grade in this ZIP code would likely be considered moderate to low for Section 8-focused investors due to the significant gap between FMR and actual rents. Investors who can diversify their tenant base and include non-voucher tenants might fare better. #### Specific Actionable Insights 1. **Diversify Tenant Base**: Given the high actual rental costs, investors should consider accepting a mix of Section 8 voucher holders and non-voucher tenants. This strategy can help balance the financial impact of lower FMR rents with the higher market rents. 2. **Target Lower-Rent Units**: Investors focusing on Section 8 vouchers should target 0BR and 1BR units, as these have lower FMRs ($2330 and $2610 respectively). These units are more likely to align with the voucher limits and provide a better chance for occupancy. 3. **Consider Property Value Appreciation**: While the cash flow might be negative for Section 8-focused investments, the high property values and potential for appreciation could make investing in this ZIP code attractive over the long term. Investors should weigh the potential capital gains against the short-term cash flow challenges. #### Bottom Line For investors focused specifically on Section 8 vouchers, the ZIP code 91387 (Santa Clarita, CA) presents a challenging environment due to the significant gap between FMR and actual rental costs. The recommendation for such investors is to **Skip** this market unless they can diversify their tenant base or target lower-rent units like 0BR or 1BR properties. For those willing to accept a mix of tenants, including non-voucher holders, the market remains **Hold**, as there is strong demand and potential for long-term capital appreciation despite the initial cash flow concerns.

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.