Location: Oxnard-Thousand Oaks-Ventura, CA | Metro: Oxnard-Thousand Oaks-Ventura, CA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $2,110 |
| 1 Bedroom | $2,350 |
| 2 Bedrooms | $2,790 |
| 3 Bedrooms | $3,780 |
| 4 Bedrooms | $4,390 |
| 5 Bedrooms | $5,092 |
| 6 Bedrooms | $5,703 |
| 7 Bedrooms | $6,159 |
| 8 Bedrooms | $6,467 |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP 93021 (Moorpark, CA) reveals some key insights into potential investment returns. Using the Fair Market Rent (FMR) for a two-bedroom unit at $2,710 annually, the implied gross yield can be calculated as follows:
$2,710 / $939,725 = 0.002877 or 0.29%
This represents the annualized income as a percentage of the median home value. In contrast, using the Zillow Observed Rent Index (ZORI) for a two-bedroom unit at $2,799 annually, the implied gross yield is:
$2,799 / $939,725 = 0.002978 or 0.30%
The difference between these yields is minimal, reflecting the similar rental rates for both FMR and market conditions. However, when considering the 20.6% renter density and the 17-day days on market (DOM), it becomes evident that the ZORI-based scenario is more realistic.
A 20.6% renter density suggests that only a portion of the housing stock is likely to be rented out, making the ZORI figure, which reflects actual market conditions, a better indicator of potential rental income. The shorter DOM of 17 days indicates a robust rental market where properties are quickly occupied, further supporting the use of ZORI for yield calculations.
In conclusion, while the FMR provides a baseline for subsidized rental income, the ZORI-based gross yield of 0.30% offers a more accurate representation of potential returns for landlords and small-portfolio investors in ZIP 93021. This yield, although modest, aligns with the local rental market dynamics and should be considered in any investment decision-making process.
Data Sources: FMR data from HUD (2027). 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.