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 of the Section 8 cap rate for ZIP code 93034 (Unknown, CA) requires an examination of the Fair Market Rent (FMR) and the market rent for a 2-bedroom apartment, alongside the median home value. For fiscal year 2024, the 2BR FMR in ZIP 93034 is set at $2410 per month.
To derive the cap rate, we first need to annualize the FMR. Multiplying the monthly FMR of $2410 by 12 months gives us an annual rental income of $28,920. The cap rate is calculated by dividing the annual rental income by the property value. However, the median home value for ZIP 93034 is not available, making it impossible to calculate an exact cap rate.
In the absence of the median home value, we can still provide a comparative gross yield. The gross yield is the annual rental income divided by the purchase price of the property. If we assume a hypothetical median home value, say $400,000, the implied gross yield would be approximately 7.23% ($28,920 / $400,000).
Without a specific market rent figure, it's challenging to provide a direct comparison. However, if the market rent were higher than the FMR, the gross yield would also increase, potentially making investment more attractive. Conversely, if the market rent were lower, the gross yield would decrease, indicating a less favorable investment scenario.
The lack of specific data on median home value and market rent means that the analysis is somewhat speculative. Given the unknown percentage of renter density and the unknown days on market (DOM), it's difficult to determine which scenario is more realistic. However, typically, higher renter density and shorter DOM suggest a more robust rental market, which could support higher market rents and thus a better gross yield.
For landlords and small-portfolio investors considering ZIP 93034, the FMR provides a baseline for rental income expectations under Section 8. While the exact cap rate cannot be determined without the median home value, the gross yield calculation offers a useful starting point for assessing potential returns.
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.