Section 8 Fair Market Rent (FMR) for ZIP 93063 - 2027

Investment Score for ZIP 93063

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	$2,050
1 Bedroom	$2,290
2 Bedrooms	$2,730
3 Bedrooms	$3,700
4 Bedrooms	$4,300
5 Bedrooms	$4,988
6 Bedrooms	$5,587
7 Bedrooms	$6,034
8 Bedrooms	$6,336

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
1BR	$2,290	$477,531	0.48%	F
2BR	$2,730	$532,204	0.51%	F
3BR	$3,700	$799,238	0.46%	F
4BR	$4,300	$905,717	0.47%	F
5BR	$4,988	$1,044,782	0.48%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 93063 (Simi Valley, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 93063 in Simi Valley, CA, as of 2026, is set at $3030 for a two-bedroom unit. This represents 29.1% of the median household income in the area, which stands at $125,098. However, the actual rental market is significantly higher, with Zillow reporting a median price of $535,434 for a two-bedroom property. The price-to-FMR ratio is 14.7x, indicating that the actual market rent is far above the FMR. This means that tenants using Section 8 vouchers face significant constraints. For instance, they would struggle to find a two-bedroom unit renting at or below $3030, given the high market prices. The gap between FMR and actual rents suggests that voucher holders might have limited options and may need to consider smaller units or less desirable locations to stay within their budget. #### Affordability & Renter Profile Simi Valley has a relatively affluent population with a median household income of $125,098. Despite this, 26.2% of residents are renters, highlighting the importance of rental housing in the area. With an occupancy rate of 98.3%, it’s clear that the rental market is tight, indicating strong demand for rental properties. Given the high median income and the fact that the FMR for a two-bedroom unit is only 29.1% of the median income, it can be inferred that many renters in this area are likely to be middle-class individuals who can afford higher rents but still benefit from the affordability offered by Section 8 vouchers. The high occupancy rate and the disparity between FMR and actual rents suggest that the market is undersupplied with affordable rental units. This tight market condition makes it challenging for low-income renters to find suitable accommodation without assistance. Therefore, the demand for affordable housing is likely to remain strong, especially among those who qualify for Section 8 vouchers. #### Investor Angle From an investor perspective, the ZIP code 93063 presents a mixed picture when considering cash flow at FMR levels. The FMR for a two-bedroom unit is $3030, while the median market rent is $535,434. At FMR levels, investors would likely see negative cash flow due to the significant difference between the FMR and the actual market value. However, the high occupancy rate and strong demand for rental properties indicate that there could be opportunities for investors willing to operate outside the strict FMR guidelines. Investors could target the broader rental market where rents are much higher, thereby ensuring positive cash flow. The investment grade for this ZIP code would be moderate to high, given the strong economic fundamentals and high demand for rentals. #### Specific Actionable Insights 1. **Focus on Larger Units**: Given the high median income and the fact that many renters can afford higher rents, investors should focus on larger units such as three-bedroom and four-bedroom apartments. The FMR for these units is $4110 and $4770 respectively, which are still well below the market rent. By targeting larger units, investors can cater to families and individuals who can afford higher rents but still benefit from the affordability provided by Section 8 vouchers. 2. **Consider Location-Specific Strategies**: Since the market is tight and the FMR is significantly lower than the actual market rent, investors should consider location-specific strategies. For example, properties located in areas with lower market rents or near public transportation hubs could be more attractive to voucher holders. Additionally, investing in properties that offer amenities like parking, green spaces, and community facilities could help attract tenants who are willing to pay slightly above FMR rates. 3. **Develop Value-Added Properties**: Investors could look into developing or renovating properties to add value, thereby justifying higher rents. This could include upgrading kitchens and bathrooms, adding energy-efficient appliances, or improving the overall aesthetic appeal of the units. By doing so, investors can command rents closer to the market value while still offering affordable options to voucher holders. #### Bottom Line Given the high market rents compared to FMR and the tight rental market, the recommendation for Section 8-focused investors is to **Skip** this ZIP code unless they are willing to operate outside the strict FMR guidelines. The gap between FMR and actual rents is too large to ensure positive cash flow at FMR levels. However, for investors looking to tap into the broader rental market, there could be opportunities to achieve positive cash flow by targeting larger units and implementing location-specific and value-added strategies. In summary, while the ZIP code 93063 offers strong economic fundamentals and high demand for rentals, the current FMR levels make it challenging for pure Section 8 investments to be profitable. Investors should either seek alternative markets or consider a broader strategy that leverages the high market rents.

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.