Location: Santa Maria-Santa Barbara, 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 | $1,710 |
| 1 Bedroom | $1,950 |
| 2 Bedrooms | $2,190 |
| 3 Bedrooms | $2,920 |
| 4 Bedrooms | $3,320 |
| 5 Bedrooms | $3,851 |
| 6 Bedrooms | $4,313 |
| 7 Bedrooms | $4,658 |
| 8 Bedrooms | $4,891 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,190 | $130,493 | 1.68% | A+ |
| 3BR | $2,920 | $194,551 | 1.5% | A+ |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $2,410 for ZIP 93252 in fiscal year 2024 will sufficiently cover the mortgage on a median-priced home valued at $188,741. To address this, consider that the FMR is designed to ensure that families paying more than 30% of their income towards housing do not become cost-burdened. With an average interest rate of around 5%, the monthly mortgage payment on a $188,741 home would be approximately $1,000, well below the FMR threshold.
The second objection could revolve around the percentage of renters in the area, which stands at 45.2%. This figure indicates a significant portion of the population is already renting, suggesting a reasonable demand for rental properties. However, it's important to note that while 45.2% is a substantial number, it does not guarantee high occupancy rates without considering other factors such as local employment trends and economic stability.
Lastly, an investor might wonder if Housing Choice Vouchers will keep up with the market rents, currently averaging at $1,252. The voucher amount can vary, but generally, it aims to cover a significant portion of the rent. In ZIP 93252, the voucher amount is expected to be close to the FMR, which is higher than the current market rent. This suggests that vouchers should adequately support tenants in affording the average rent, though it's crucial to monitor any changes in voucher policies or funding levels.
To summarize, while the FMR of $2,410 should comfortably cover a mortgage payment on a median-priced home, the 45.2% rental rate shows a solid base of demand. However, the economic environment and employment trends must also be considered. Regarding vouchers, they are likely to meet the needs of tenants based on current market rents, but vigilance is advised due to potential policy shifts.
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.