Location: Bakersfield-Delano, CA | Metro: Bakersfield-Delano, 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 | $1,090 |
| 1 Bedroom | $1,100 |
| 2 Bedrooms | $1,430 |
| 3 Bedrooms | $1,980 |
| 4 Bedrooms | $2,390 |
| 5 Bedrooms | $2,772 |
| 6 Bedrooms | $3,105 |
| 7 Bedrooms | $3,353 |
| 8 Bedrooms | $3,521 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,430 | $174,242 | 0.82% | C |
| 3BR | $1,980 | $250,634 | 0.79% | D |
U.S. Census Bureau data (2024)
ZIP 93206, located in Buttonwillow, CA, within the Bakersfield-Delano, CA Metropolitan Statistical Area (MSA), is best suited as a cash-flow anchor in a Section 8 portfolio strategy. This designation is based on the favorable financial metrics that support steady rental income.
The Federal Market Rent (FMR) for ZIP 93206 in fiscal year 2024 is set at $1,130. In comparison, the current market rent stands at $1,108, indicating a positive spread of $22 per unit in favor of FMR. This means landlords participating in the Section 8 program can expect to receive slightly higher rents than what the market offers, thereby enhancing cash flow stability.
The median home value in Buttonwillow is $232,135. Given that the majority of residents are renters (60.9% renter share), rather than homeowners, this suggests a strong demand for rental properties. The median income of $53,654 further supports the idea that many residents rely on affordable housing options, such as those provided through Section 8, to meet their housing needs.
ZIP 93206 does not present significant opportunities for appreciation plays, as there is no notable percentage of price-cut shares or days on market (DOM) that would indicate a rapidly growing or declining market. Instead, the focus should be on leveraging the existing demand for rental units to ensure consistent and reliable cash flow.
Moreover, the high renter share and the alignment of FMR with market rents make ZIP 93206 an ideal location for anchoring a portfolio's cash flow. Landlords can depend on the Section 8 program to provide steady rental income, which is particularly valuable in a region where the majority of the population consists of renters.
In summary, ZIP 93206 serves as a cash-flow anchor due to its positive FMR spread over market rent and the substantial demand for rental housing driven by the local economy and demographics. This makes it a stable and predictable investment choice for landlords and small-portfolio investors looking to secure long-term rental income.
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.