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 | $1,170 |
| 1 Bedroom | $1,180 |
| 2 Bedrooms | $1,530 |
| 3 Bedrooms | $2,120 |
| 4 Bedrooms | $2,560 |
| 5 Bedrooms | $2,970 |
| 6 Bedrooms | $3,326 |
| 7 Bedrooms | $3,592 |
| 8 Bedrooms | $3,772 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,180 | $163,718 | 0.72% | D |
| 2BR | $1,530 | $220,190 | 0.69% | D |
| 3BR | $2,120 | $288,976 | 0.73% | D |
| 4BR | $2,560 | $331,555 | 0.77% | D |
| 5BR | $2,970 | $412,458 | 0.72% | D |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP 93305, which encompasses La Cresta and Altavista in Kern County, California, are crucial for landlords and small-portfolio investors to understand. For a two-bedroom apartment, the SAFMR (Small Area Fair Market Rent) for FY 2024 is set at $1120. This SAFMR is specifically tailored for this ZIP code, meaning it reflects the rental market conditions unique to this area.
The local market rent, as measured by ZORI (Zillow Observed Rent Index), stands at $1,291. This figure represents the actual rents being charged in the market, which is higher than the SAFMR. Landlords should be aware that the Section 8 program operates under the SAFMR, not the ZORI, so the reimbursement will not match the local market rent.
A voucher holder's total rent payment is composed of three parts: the tenant's portion, the utility allowance, and the subsidy paid by the housing authority. The tenant's portion is typically 30% of their adjusted income. Utility allowances can vary but are usually around $150 per month for a two-bedroom unit. The housing authority then covers the difference between the SAFMR and the sum of the tenant's portion and the utility allowance.
To illustrate, let's assume a voucher holder has an adjusted income that results in a tenant portion of $300. With a utility allowance of $150, the housing authority would reimburse the landlord up to $670 to meet the SAFMR of $1120. Therefore, the landlord receives a total of $1120 per month from both sources: $300 from the tenant and $670 from the housing authority.
This setup creates a reimbursement gap since the SAFMR of $1120 is lower than the local market rent of $1,291. The gap amounts to $171 per month, which means landlords must either accept a lower rent than the market rate or seek ways to reduce operating costs to remain competitive and profitable.
In summary, landlords in ZIP 93305 should expect a reimbursement of $1120 for a two-bedroom unit under the Section 8 program, which includes the tenant's portion and utility allowance. This is $171 less than the local market rent, resulting in a monthly surplus for the market but a gap for the Section 8 reimbursement.
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.