Section 8 Fair Market Rent (FMR) for ZIP 93303 - 2027

FY 2027 Fair Market Rent Rates

The ZIP code 93303 in Unknown, CA presents several challenges for landlords considering Section 8 investments. Tenant turnover is a significant concern when comparing the market rent to the Fair Market Rent (FMR) of $1260 for FY 2024. If the market rent is higher, tenants might be incentivized to leave once they can afford to pay market rates, leading to frequent turnovers. This can increase costs associated with finding new tenants and preparing units for occupancy.

Vacancy exposure is another critical issue. With no data on the days on market (DOM), it's difficult to assess how quickly properties can be rented out. A prolonged DOM increases the risk of vacancy, which can lead to lost rental income. Additionally, the lack of data on the typical home value and median income makes it challenging to gauge the potential for deferred maintenance issues. Lower income levels can mean that tenants have fewer resources to maintain property upkeep, potentially resulting in higher repair and maintenance costs for landlords.

Despite these risks, the high renter share in the area suggests a robust demand for rental housing. This typically translates into a higher demand for Section 8 vouchers, which can provide a steady stream of tenants willing to pay the contracted rent. The presence of many renters also indicates that the area has a strong need for affordable housing, which can be beneficial for landlords who are prepared to manage the unique aspects of Section 8 tenancies.

Verdict: Moderate risk for a first-time Section 8 landlord.

Data Sources: FMR data from HUD (2027).

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.