Location: Santa Maria-Santa Barbara, CA | Metro: Santa Maria-Santa Barbara, CA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $2,680 |
| 1 Bedroom | $2,930 |
| 2 Bedrooms | $3,360 |
| 3 Bedrooms | $4,320 |
| 4 Bedrooms | $4,930 |
| 5 Bedrooms | $5,719 |
| 6 Bedrooms | $6,405 |
| 7 Bedrooms | $6,917 |
| 8 Bedrooms | $7,263 |
U.S. Census Bureau data (2024)
A landlord considering purchasing a property in ZIP code 93106 for Section 8 purposes must follow a structured decision-making process. Here’s a step-by-step guide based on the available data:
Step 1: Clearing Debt Service
The Fair Market Rent (FMR) for ZIP 93106 in fiscal year 2024 is set at $2,990. To determine if this amount can cover your debt service, you need to calculate the total cost of owning the property, including mortgage payments, insurance, taxes, and maintenance. If the FMR of $2,990 exceeds these costs, then the answer is yes. If it does not, then the answer is no.
Step 2: Market Rent Comparison
The Census ACS indicates that the average market rent in ZIP 93106 is $2,100. This is below the FMR of $2,990. Since the FMR is higher than the market rent, properties rented under Section 8 will be more profitable compared to the general rental market. This makes the answer to this step a yes.
Step 3: Rental Demand Assessment
Data shows that 100.0% of residents in ZIP 93106 are renters. This high percentage suggests strong demand for rental properties. However, the Days on Market (DOM) for properties is not specified, which means we cannot assess how quickly properties are rented out. Despite this lack of information, the high percentage of renters supports a yes response, indicating sufficient demand.
Decision Tree Summary:
In conclusion, based on the data provided, ZIP 93106 presents a favorable environment for landlords and small-portfolio investors interested in Section 8 properties, particularly due to the high FMR relative to market rents and the high percentage of renters.
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.