Location: Bakersfield-Delano, CA | Metro: Bakersfield-Delano, CA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,280 |
| 1 Bedroom | $1,290 |
| 2 Bedrooms | $1,670 |
| 3 Bedrooms | $2,320 |
| 4 Bedrooms | $2,790 |
| 5 Bedrooms | $3,236 |
| 6 Bedrooms | $3,624 |
| 7 Bedrooms | $3,914 |
| 8 Bedrooms | $4,110 |
U.S. Census Bureau data (2024)
The median home value in ZIP 93287 is $289,700 according to recent data. This figure is critical when analyzing the potential returns for landlords and small-portfolio investors considering Section 8 properties.
The Fair Market Rent (FMR) for a two-bedroom unit in ZIP 93287 for FY 2024 is set at $1,280 per month. To annualize this figure, we multiply by 12, resulting in an annualized FMR of $15,360. Given the median home value of $289,700, this implies a gross yield of approximately 5.3% ($15,360 / $289,700).
Market rent data for 2BR units in ZIP 93287 is currently unavailable. However, if we assume the market rent is higher than the FMR, the gross yield would be greater than 5.3%. For instance, if the market rent were $1,500 per month, the annualized market rent would be $18,000, implying a gross yield of approximately 6.2% ($18,000 / $289,700).
The gross yield comparison between the FMR and hypothetical market rent suggests that the latter scenario offers a higher potential return. However, the reality of achieving such a high market rent must be considered. With a renter density of 18.3%, the demand for rental properties is relatively low, making it challenging to secure tenants willing to pay above the FMR. Additionally, the lack of specific market rent data indicates a possible scarcity of rental listings, which could further complicate securing higher-paying tenants.
In conclusion, while the hypothetical market rent scenario provides a higher gross yield, the FMR-based scenario is more realistic given the current conditions in ZIP 93287. Landlords and investors should consider these factors when evaluating the potential returns of Section 8 properties in this area.
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.