Location: Santa Maria-Santa Barbara, CA | Metro: Santa Maria-Santa Barbara, CA MSA
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $2,830 |
| 1 Bedroom | $3,090 |
| 2 Bedrooms | $3,540 |
| 3 Bedrooms | $4,550 |
| 4 Bedrooms | $5,190 |
| 5 Bedrooms | $6,020 |
| 6 Bedrooms | $6,742 |
| 7 Bedrooms | $7,281 |
| 8 Bedrooms | $7,645 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $3,540 | $1,046,095 | 0.34% | F |
| 3BR | $4,550 | $1,843,328 | 0.25% | F |
| 4BR | $5,190 | $2,541,035 | 0.2% | F |
| 5BR | $6,020 | $4,899,325 | 0.12% | F |
U.S. Census Bureau data (2024)
Santa Barbara, CA's ZIP code 93110 is a neighborhood characterized by a relatively affluent population of 15,436 residents, with a significant portion, 36.3%, being renters. The median income here is notably high at $129,209, reflecting the area's upscale living standards. This is further underscored by the median home value, which stands at an impressive $1,892,683. Such figures indicate that 93110 is a desirable location, attracting individuals and families who can afford higher costs of living.
The economic landscape for rental properties in 93110 is favorable for investors. The Fair Market Rent (FMR) for the zip code for fiscal year 2024 is set at $3,470, slightly above the current market rent, known as ZORI (Zillow Observed Rent Index), which is $3,233. This suggests that there is a margin where Section 8 vouchers can cover a substantial portion of the market rent, making it a viable option for those seeking stable, government-backed rental income.
Given these factors, ZIP 93110 is well-suited for both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the alignment between FMR and market rents means that properties can be rented out without extensive management or renovation efforts, providing consistent cash flow. On the other hand, value-add buyers can leverage the high median home values and median incomes to improve property quality and increase rents beyond the FMR, thereby capturing additional market premiums.
Investors should note that the high median income and home values suggest a strong local economy and a willingness among residents to pay higher rents. This creates opportunities for both types of investors to capitalize on the robust demand for rental housing in this upscale part of Santa Barbara.
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.