Section 8 Fair Market Rent (FMR) for ZIP 93003 - 2027

Investment Score for ZIP 93003

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	$1,870
1 Bedroom	$2,080
2 Bedrooms	$2,470
3 Bedrooms	$3,320
4 Bedrooms	$3,870
5 Bedrooms	$4,489
6 Bedrooms	$5,028
7 Bedrooms	$5,430
8 Bedrooms	$5,702

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$2,470	$568,254	0.43%	F
3BR	$3,320	$889,964	0.37%	F
4BR	$3,870	$1,022,718	0.38%	F
5BR	$4,489	$1,219,853	0.37%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 93003 (Ventura, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 93003 in Ventura, California, is set by HUD for 2026. For a two-bedroom unit, the FMR is $2680. However, the Zillow median price for a two-bedroom home in this area is $572,216, which translates to a price-to-FMR ratio of 17.8x. This means that the actual rental prices in the market are significantly higher than the FMR, creating a challenging environment for Section 8 voucher holders. The maximum rent allowed under a Section 8 voucher for a two-bedroom unit is $2680, but the average market rent far exceeds this amount. Consequently, voucher holders face limited options and must often settle for units that are below average quality or located in less desirable areas. #### Affordability & Renter Profile ZIP code 93003 has a population of 52,906, with 41.5% of residents being renters. The occupancy rate stands at 96.6%, indicating a robust demand for housing in the area. Given the median household income of $103,761, the cost of renting a two-bedroom unit at $2680 represents approximately 31.0% of the median income. This suggests that while the FMR is relatively affordable compared to the median income, it still places a significant financial burden on many renters. The high price-to-FMR ratio further exacerbates affordability issues, making it difficult for lower-income individuals to find suitable housing without assistance. The tight market conditions imply that there is a shortage of affordable rental properties, leading to competition among renters and potentially driving up rents. This situation is particularly challenging for those relying on Section 8 vouchers, as they are constrained by the FMR limits and may struggle to secure decent housing. #### Investor Angle From an investor’s perspective, the ZIP code 93003 presents a mixed picture. While the high price-to-FMR ratio indicates a strong market demand, it also suggests that rental properties priced at FMR levels may not be cash-flow positive. To assess the investment potential, we need to consider the typical rental yields and expenses associated with owning and managing rental properties. Given the Zillow median price of $572,216 for a two-bedroom property, the potential rental yield at the FMR level of $2680 would be quite low. Assuming a conservative mortgage rate of 4.5% and monthly mortgage payments of around $2800, the net cash flow would likely be negative if the property is rented out at the FMR. Additionally, property taxes, insurance, maintenance, and other operating costs would further reduce the profitability. Therefore, the investment grade for properties in ZIP code 93003, when considering only FMR rents, is relatively poor. Investors seeking to participate in the Section 8 market should carefully evaluate their risk tolerance and consider the long-term implications of potentially negative cash flows. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors might consider focusing on smaller units such as one-bedroom or studio apartments. These units typically have lower FMRs and may offer better cash flow opportunities. For instance, the FMR for a one-bedroom unit is $2240, which could provide a more balanced rental yield relative to the purchase price. 2. **Consider Property Location**: Investors should prioritize properties in less desirable neighborhoods where rents are closer to the FMR. This approach can help ensure that the rental income aligns more closely with the FMR, thereby improving the likelihood of achieving positive cash flow. Additionally, these areas may offer lower purchase prices, reducing the overall investment risk. 3. **Seek Alternative Funding Sources**: Given the high purchase prices and low FMR-based rental yields, investors might explore alternative funding sources such as grants, tax credits, or partnerships with local government agencies. These sources can help offset the initial investment costs and improve the financial viability of Section 8-focused investments. #### Bottom Line Based on the analysis, the recommendation for Section 8-focused investors in ZIP code 93003 is to **skip** this market. The high price-to-FMR ratio and tight market conditions make it difficult to achieve positive cash flow when renting properties at FMR levels. Investors should look for markets with more favorable ratios and less stringent competition for affordable housing units. ### Summary In ZIP code 93003, the high median home prices and tight rental market create significant challenges for both renters and investors. The FMR for two-bedroom units is $2680, which is far below the actual market rent of $572,216. This disparity makes it difficult for Section 8 voucher holders to find suitable housing, and it poses risks for investors looking to generate positive cash flow. Therefore, the recommendation is to avoid this market for Section 8-focused investments.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.