Location: Oxnard-Thousand Oaks-Ventura, CA | Metro: Oxnard-Thousand Oaks-Ventura, CA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,830 |
| 1 Bedroom | $2,040 |
| 2 Bedrooms | $2,430 |
| 3 Bedrooms | $3,290 |
| 4 Bedrooms | $3,820 |
| 5 Bedrooms | $4,431 |
| 6 Bedrooms | $4,963 |
| 7 Bedrooms | $5,360 |
| 8 Bedrooms | $5,628 |
The analysis for ZIP 93002 focuses on the potential rental income and home values to derive a cap-rate picture for Section 8 properties. For a two-bedroom property, the Fair Market Rent (FMR) for fiscal year 2024 is set at $2410 per month. This translates into an annual rental income of $28,920. However, the median home value in this area is currently unavailable, making it difficult to calculate a precise cap rate based on typical market valuations.
To provide a clearer picture, let's consider a hypothetical median home value for ZIP 93002. If we assume a median home value of $400,000, the implied gross yield would be approximately 7.23%. This calculation is derived from dividing the annual rental income by the assumed property value. However, this scenario is speculative due to the lack of specific data on median home values.
In a more realistic scenario, where the actual market conditions are considered, the gross yield would likely differ due to the unknown market rent. Since the market rent is not available, we cannot accurately compare the gross yield against the FMR. The absence of this figure means that any analysis must rely heavily on the FMR data, which may not fully reflect the current market dynamics.
Given the unavailability of key metrics such as renter density and days on market (DOM), it's challenging to determine which scenario is more plausible. However, the gross yield of 7.23% based on the FMR provides a benchmark for investors to evaluate the potential profitability of Section 8 properties in ZIP 93002. It should be noted that this figure does not account for operating expenses, maintenance costs, or vacancy rates, which are crucial factors for calculating the net operating income (NOI).
Investors should use the provided FMR and the calculated gross yield as a starting point for their financial modeling. They must also gather additional local market data to refine their analysis and make informed decisions regarding the acquisition and management of Section 8 properties in this area.
Data Sources: FMR data from HUD (2027).
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.