Section 8 Fair Market Rent (FMR) for ZIP 93304 - 2027

Investment Score for ZIP 93304

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,210
1 Bedroom	$1,220
2 Bedrooms	$1,590
3 Bedrooms	$2,200
4 Bedrooms	$2,660
5 Bedrooms	$3,086
6 Bedrooms	$3,456
7 Bedrooms	$3,732
8 Bedrooms	$3,919

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,220	$186,873	0.65%	D
2BR	$1,590	$240,968	0.66%	D
3BR	$2,200	$305,467	0.72%	D
4BR	$2,660	$330,439	0.8%	C
5BR	$3,086	$385,982	0.8%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 93304 (Bakersfield, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 93304 is set by HUD for the year 2026. The FMRs for various bedroom sizes are as follows: - 0BR: $1090 - 1BR: $1100 - 2BR: $1430 (which is 33.8% of the median household income) - 3BR: $1990 - 4BR: $2400 To understand how these FMRs compare to actual rents, we need to consider the occupancy rate and renter percentage. With an occupancy rate of 95.5%, it suggests that there is a high demand for rental properties. However, the renter percentage being 53.9% indicates that over half of the population in this area relies on renting their homes. Given the Zillow median price for a 2BR property is $238,069, the price-to-FMR ratio is 13.9x. This means that the median home value is significantly higher than the FMR, which can create challenges for voucher holders. Specifically, landlords may be less inclined to accept vouchers due to the low rent compared to the potential value of the property. For instance, a 2BR unit priced at $1430 per month would have to be rented out for 13.9 years to match the median home value, making it difficult for investors to see immediate returns. #### Affordability & Renter Profile The median household income in ZIP 93304 is $50,790. Given that the FMR for a 2BR unit is $1430, which represents 33.8% of the median income, it suggests that the market is relatively affordable for renters. However, with 53.9% of the population renting, there is a significant portion of the community that may struggle to afford housing without assistance. The occupancy rate of 95.5% indicates a tight rental market where there is little excess capacity. This tightness could lead to upward pressure on rents, especially if there is an increase in demand or a decrease in supply. It also implies that there is limited availability for voucher holders, who may find it challenging to secure housing within the FMR limits. #### Investor Angle From an investor’s perspective, the key question is whether the ZIP code offers cash flow-positive opportunities at the FMR levels. Given the FMR for a 2BR unit is $1430 and the Zillow median price is $238,069, the potential annual rent is $17,160. If we assume a conservative mortgage rate of 5%, the annual mortgage payment would be approximately $12,850, leaving a net positive cash flow of around $4,310 annually before accounting for maintenance and other costs. However, the price-to-FMR ratio of 13.9x suggests that the property values are much higher than the rents that can be charged under the voucher program. This makes it challenging for investors to achieve significant appreciation or equity growth through rental income alone. Therefore, the investment grade for this ZIP code would be considered moderate, given the tight rental market and the limited upside potential from rental income. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should focus on smaller units such as 0BR and 1BR apartments. These units have lower FMRs ($1090 and $1100 respectively), which might still provide some cash flow positive opportunities, especially if the investor can leverage economies of scale by managing multiple units. 2. **Consider Non-Voucher Tenants**: While the FMRs are important for voucher holders, they do not reflect the broader rental market. Investors should consider renting to non-voucher tenants who might be willing to pay closer to market rates, thereby increasing the potential for positive cash flow and appreciation. 3. **Evaluate Maintenance Costs**: Given the tight rental market, properties that require significant maintenance might be harder to rent out. Investors should evaluate the condition of properties and factor in maintenance costs when assessing the feasibility of cash flow positive investments. #### Bottom Line For Section 8-focused investors, ZIP code 93304 presents a mixed picture. While the occupancy rate and renter percentage suggest a strong demand for rental properties, the high price-to-FMR ratio makes it challenging to achieve significant financial gains solely through rental income. Therefore, the recommendation for investors is to **Hold**. They should carefully assess the size and condition of properties and consider diversifying their tenant base to include both voucher and non-voucher holders to maximize potential returns.

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.