Location: Santa Maria-Santa Barbara, CA | Metro: San Luis Obispo-Paso Robles, 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 | $2,220 |
| 1 Bedroom | $2,480 |
| 2 Bedrooms | $2,820 |
| 3 Bedrooms | $3,670 |
| 4 Bedrooms | $4,190 |
| 5 Bedrooms | $4,860 |
| 6 Bedrooms | $5,443 |
| 7 Bedrooms | $5,878 |
| 8 Bedrooms | $6,172 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $3,670 | $279,580 | 1.31% | A |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 93254 stands at $2410 for fiscal year 2024, providing a clear benchmark for rental pricing in the area. Despite the absence of specific market rent data, the median home value of $295,084 offers insight into the overall housing market's valuation. The lack of detailed figures on price-cut shares and days on market (DOM) limits precise conclusions about short-term market trends, but the existing data points to a dynamic equilibrium.
A key indicator of housing dynamics in ZIP 93254 is the 21.8% renter share. This suggests that while a significant portion of the population opts for renting over homeownership, the majority still prefer owning homes. Such a scenario often implies long-term housing pressure, as renters represent a constant demand for rental properties. Landlords and small-portfolio investors should recognize this as an ongoing need for well-managed rental units, ensuring steady occupancy rates and rental income.
The absence of a direct comparison between FMR and market rents indicates that the rental market might be less volatile compared to areas where substantial discrepancies exist. In ZIP 93254, the rental market seems to align closely with the government's fair market assessment, suggesting a balanced relationship between supply and demand. However, the high median home value also signals that homeownership is costly, which could push more residents towards renting if they cannot afford to buy, further increasing the demand for rental properties.
In summary, ZIP 93254 presents a market where the demand for rentals is stable and significant, driven by a notable renter share and supported by a fair market rent that reflects a balanced market condition. Investors should focus on maintaining quality rental properties to capitalize on this consistent demand.
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.