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 | $1,180 |
| 1 Bedroom | $1,190 |
| 2 Bedrooms | $1,550 |
| 3 Bedrooms | $2,150 |
| 4 Bedrooms | $2,590 |
| 5 Bedrooms | $3,004 |
| 6 Bedrooms | $3,364 |
| 7 Bedrooms | $3,633 |
| 8 Bedrooms | $3,815 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,190 | $150,313 | 0.79% | D |
| 2BR | $1,550 | $212,008 | 0.73% | D |
| 3BR | $2,150 | $315,210 | 0.68% | D |
| 4BR | $2,590 | $364,773 | 0.71% | D |
| 5BR | $3,004 | $412,776 | 0.73% | D |
U.S. Census Bureau data (2024)
The 93307 ZIP code in Bakersfield is a dense, predominantly residential neighborhood known for its suburban feel and high renter population. It is largely characterized by single-family homes and serves as a hub for working-class families. A major local employer driving the economy in this region is the Kern Medical Center, located nearby, which provides significant healthcare jobs and stabilizes the local workforce. The area is accessible via major thoroughfares like Ming Avenue and Gosford Road, connecting residents to the broader Bakersfield metro area.
From a financial perspective, this market presents a clear arbitrage challenge. The FY2026 HUD Fair Market Rent for a 2-bedroom unit is set at $1,390, whereas current market rents (Zillow ZORI) sit at $1,765, resulting in a negative gap of $375. Investors must accept a roughly 21% discount to market rates if they participate in the Section 8 program. On the asset side, the median home value is $318,558, with a specific median 2BR sale price of $216,482. Properties are moving at a moderate pace, with a median of 47 days on market.
Despite the rent gap, demand fundamentals remain robust. With a renter share of 53.0% and a median household income of $56,446, a large portion of the population requires affordable housing solutions, ensuring a steady stream of voucher applicants. The neighborhood is served by the Bakersfield City School District, which includes several highly-rated elementary options, and public transit is available through Golden Empire Transit, adding convenience for car-light households. These amenities help maintain occupancy rates even when market rents rise above HUD limits.
The Section 8 verdict for 93307 leans toward stability over maximum immediate cash flow. While the $375 rent discount is notable, the low entry price of $216,482 for a 2BR home allows for decent leverage and debt coverage. The high renter concentration and local institutional employers like Kern Medical reduce vacancy risk, making this a solid hold for investors prioritizing consistent, government-backed payments over chasing top-market dollar premiums.
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.