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 | $3,370 |
| 1 Bedroom | $3,680 |
| 2 Bedrooms | $4,220 |
| 3 Bedrooms | $5,420 |
| 4 Bedrooms | $6,190 |
| 5 Bedrooms | $7,180 |
| 6 Bedrooms | $8,042 |
| 7 Bedrooms | $8,685 |
| 8 Bedrooms | $9,119 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $4,220 | $950,213 | 0.44% | F |
| 3BR | $5,420 | $1,573,177 | 0.34% | F |
| 4BR | $6,190 | $1,794,845 | 0.34% | F |
| 5BR | $7,180 | $2,268,411 | 0.32% | F |
U.S. Census Bureau data (2024)
The ZIP code 93111 in Santa Barbara, CA, presents a dynamic rental market. The Fair Market Rent (FMR) for the area stands at $4170 for the fiscal year 2024, indicating a high threshold set by HUD for determining eligibility for housing assistance programs. In comparison, the actual market rent, measured by Zillow's ZORI, is slightly lower at $3,630. This suggests that while there is a premium associated with the FMR, the market itself is pricing rentals competitively.
The low price-cut share of 0.2% implies that landlords are generally not having to reduce their asking rents to attract tenants, which could point to a market where demand is keeping pace with supply, if not slightly outpacing it. However, the absence of data on days on market (DOM) makes it challenging to definitively state whether there is an excess of available units or a shortage.
The median home value in the area is $1,671,622, reflecting a robust housing market with high property values. This high median home value can contribute to increased rental activity as potential homeowners find it difficult to enter the market due to the cost barrier. With 34.2% of residents being renters, this indicates a significant portion of the population relies on the rental market, suggesting ongoing pressure on rental availability and potentially leading to sustained demand over the long term.
In summary, ZIP 93111 appears to be a market where demand is strong enough to support current rents without substantial concessions. The high median home value and notable renter share imply that there is likely to be continued interest in renting properties, making it a potentially stable and attractive investment for landlords and small-portfolio investors.
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.