Location: Bakersfield-Delano, CA | Metro: Bakersfield-Delano, CA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,100 |
| 1 Bedroom | $1,110 |
| 2 Bedrooms | $1,440 |
| 3 Bedrooms | $1,990 |
| 4 Bedrooms | $2,410 |
| 5 Bedrooms | $2,796 |
| 6 Bedrooms | $3,132 |
| 7 Bedrooms | $3,383 |
| 8 Bedrooms | $3,552 |
U.S. Census Bureau data (2024)
ZIP 93251, located within the Bakersfield-Delano, CA MSA, presents itself as an ideal cash-flow anchor for a Section 8 portfolio strategy. The primary reason for this classification lies in the favorable spread between the Fair Market Rent (FMR) and the actual market rent for the area. For fiscal year 2024, the FMR for ZIP 93251 is set at $1160, whereas the market rent stands at $982. This $178 difference per unit can be leveraged to ensure steady and reliable cash flow.
The higher FMR rate compared to the market rent indicates that properties in this ZIP code can be rented out at rates that exceed the typical market conditions, thereby providing a buffer for landlords and small-portfolio investors. This buffer is crucial because it ensures that even if there are any unforeseen maintenance costs or vacancies, the overall financial stability of the portfolio remains intact. Additionally, the median home value being N/A suggests that the focus on rental income rather than property appreciation is prudent.
While the appreciation potential in ZIP 93251 cannot be quantified with the given data (price-cut share and days on market are both N/A), the significant renter share of 72.0% and the median income of $80,781 provide a strong foundation for consistent demand for rental properties. High renter share means a large portion of the population is already accustomed to renting, which supports a robust rental market. Coupled with a median income that, although not directly indicative of tenant quality, suggests a reasonable economic base from which tenants can draw their rental payments, this ZIP code offers a stable environment for investment.
In conclusion, ZIP 93251 serves best as a cash-flow anchor within a Section 8 portfolio strategy due to the positive spread between FMR and market rent, a high renter share, and a median income level that supports sustained demand. These factors collectively contribute to creating a predictable and secure revenue stream for investors.
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.