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 | $1,020 |
| 1 Bedroom | $1,030 |
| 2 Bedrooms | $1,340 |
| 3 Bedrooms | $1,860 |
| 4 Bedrooms | $2,240 |
| 5 Bedrooms | $2,598 |
| 6 Bedrooms | $2,910 |
| 7 Bedrooms | $3,143 |
| 8 Bedrooms | $3,300 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,340 | $147,677 | 0.91% | C |
| 3BR | $1,860 | $235,679 | 0.79% | D |
| 4BR | $2,240 | $304,972 | 0.73% | D |
U.S. Census Bureau data (2024)
The investment risk assessment for ZIP 93268 in Taft, CA, highlights several potential challenges that landlords and small-portfolio investors might face when considering Section 8 properties. Tenant turnover is a significant concern, with the market rent at $1,133 compared to the Fair Market Rent (FMR) of $1,030 for FY 2024. This discrepancy suggests that tenants who qualify for Section 8 vouchers may struggle to afford market-rate rents once their subsidy expires, leading to higher turnover rates.
Vacancy exposure is another issue, as the Days on Market (DOM) data is currently unavailable. This lack of information makes it difficult to predict how long it might take to fill vacancies, which can significantly impact cash flow. Additionally, the deferred maintenance exposure is notable, given the typical home value of $205,477 and the median income of $57,778. Lower incomes mean that tenants may be less likely to contribute to the upkeep of the property, potentially leaving landlords responsible for costly repairs and maintenance.
Despite these risks, the high renter share of 49.8% in ZIP 93268 presents an opportunity. High renter density typically indicates a robust demand for rental housing, including those supported by Section 8 vouchers. This demand can help mitigate some of the risks associated with tenant turnover and vacancy exposure, as there is a larger pool of potential tenants.
In conclusion, the overall risk for a first-time Section 8 landlord in ZIP 93268 is moderate.
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.