Section 8 Fair Market Rent (FMR) for ZIP 93117 - 2027

Investment Score for ZIP 93117

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	$2,680
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

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	$2,930	$596,235	0.49%	F
2BR	$3,360	$815,160	0.41%	F
3BR	$4,320	$1,371,783	0.31%	F
4BR	$4,930	$1,581,816	0.31%	F
5BR	$5,719	$1,813,166	0.32%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 93117 (Goleta, CA) #### Section 8 Voucher Dynamics In Goleta, California (ZIP code 93117), the Fair Market Rent (FMR) for 2026 is set at $3450 for a two-bedroom unit. This amount represents 46.0% of the median household income of $90,037, indicating that it is relatively affordable for those earning close to the median income. However, the actual rental market is significantly higher. According to Zillow, the median price for a two-bedroom unit is $814,424, which translates to a price-to-FMR ratio of 19.7x. This means that the actual rent prices are nearly 20 times higher than what the FMR suggests should be affordable. For Section 8 voucher holders, this creates a significant constraint, as the maximum allowable rent under the program is much lower than the market rates. Consequently, voucher holders will find it extremely challenging to secure housing within their budget in this area. #### Affordability & Renter Profile The population of Goleta is 52,934, with 61.9% of residents being renters. This high percentage of renters indicates a strong demand for rental properties in the area. The occupancy rate stands at 93.1%, suggesting that the market is quite tight, with very little vacancy. Given the high rent prices relative to the FMR, it is likely that many renters are either paying out-of-pocket or receiving some form of assistance beyond Section 8 vouchers. The median household income of $90,037 implies that most residents are middle-class individuals who can afford higher rents, but the significant gap between the FMR and actual market prices makes it difficult for lower-income individuals to find suitable housing without substantial financial aid. #### Investor Angle From an investor perspective, the ZIP code 93117 presents a challenging scenario for cash flow if relying solely on FMRs. The FMR for a two-bedroom unit is $3450, while the actual median rental price is $814,424, which is far above the FMR. To determine if this ZIP code is cash-flow positive at FMR, we need to consider the typical costs associated with owning and managing rental properties. These include mortgage payments, property taxes, insurance, maintenance, and management fees. Assuming a conservative estimate of 1% annual property tax, $100 monthly insurance, and $200 monthly maintenance and management fees, the total monthly cost for a property priced at $814,424 would be approximately $1000 in taxes, $100 in insurance, and $200 in maintenance and management, totaling $1300 per month. Even with these conservative estimates, the FMR of $3450 would not cover the mortgage payment alone, let alone the other expenses. Therefore, it is unlikely that an investor would achieve positive cash flow by renting at the FMR levels. #### Specific Actionable Insights 1. **Target Higher-Income Renters**: Given the high actual rental prices compared to the FMR, investors should focus on targeting higher-income renters who can afford the market rates. This strategy would ensure better cash flow and profitability. For instance, a two-bedroom unit could be rented for $2000-$2500 above the FMR, which would still be below the market median of $814,424. 2. **Consider Property Tax Incentives**: Investors should look into local property tax incentives or exemptions that might reduce the overall cost of ownership. This could help bridge the gap between the FMR and the actual rental income needed to cover expenses. 3. **Utilize Section 8 Plus-Up Programs**: Since the FMR is significantly lower than the market rates, investors could explore Section 8 plus-up programs where additional funds are provided to make up the difference between the FMR and the actual market rent. This would allow them to participate in the Section 8 program while still achieving positive cash flow. #### Bottom Line Based on the analysis, the recommendation for Section 8-focused investors in ZIP code 93117 is to **Skip** this market. The high actual rental prices and the tight market conditions make it difficult to achieve positive cash flow when renting at FMR levels. Additionally, the significant disparity between the FMR and the market median rent suggests that there is limited availability of properties that can be rented within the FMR guidelines. Investors looking to enter the Goleta rental market should consider targeting higher-income renters or exploring alternative funding mechanisms to supplement the FMR.

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.