Section 8 Fair Market Rent (FMR) for ZIP 93308 - 2027

Investment Score for ZIP 93308

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	$1,370
1 Bedroom	$1,380
2 Bedrooms	$1,790
3 Bedrooms	$2,480
4 Bedrooms	$2,990
5 Bedrooms	$3,468
6 Bedrooms	$3,884
7 Bedrooms	$4,195
8 Bedrooms	$4,405

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	$1,380	$171,245	0.81%	C
2BR	$1,790	$224,997	0.8%	D
3BR	$2,480	$358,010	0.69%	D
4BR	$2,990	$449,999	0.66%	D
5BR	$3,468	$547,762	0.63%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 93308 (Bakersfield, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 93308 is set by HUD for 2026, with the following rates: - 0BR: $1210 - 1BR: $1210 - 2BR: $1580 (which represents 30.4% of the median household income) - 3BR: $2200 - 4BR: $2650 These figures represent the maximum rent that a Section 8 voucher holder can pay for a unit of the specified size. However, the actual rental market in ZIP 93308 is significantly higher. The Zillow median price for a 2BR unit is $223,801, which translates into a monthly rental cost that is much higher than the FMR. Specifically, the price-to-FMR ratio for a 2BR unit is 11.8x, meaning that the average market rent for a 2BR unit is approximately $17,600 annually ($1467 per month), far exceeding the $1580 FMR limit. This discrepancy creates significant constraints for voucher holders. They must find units that are priced below or at the FMR rate, which is challenging given the high market rents. This situation often leads to voucher holders being limited to older, less desirable properties or facing long wait times for suitable housing. #### Affordability & Renter Profile ZIP code 93308 has a population of 55,078, with 51.3% of residents being renters. This indicates a strong demand for rental housing in the area. The occupancy rate stands at 93.8%, suggesting that the market is relatively tight, with few vacant units available. Given the median household income of $62,445, the affordability of housing is a critical issue. The FMR for a 2BR unit is $1580, which is 30.4% of the median income. This means that a significant portion of the population would struggle to afford market-rate rents without assistance. The high percentage of renters and the tight occupancy rate suggest that there is a robust demand for affordable housing options. #### Investor Angle From an investor perspective, the ZIP code 93308 presents both opportunities and challenges. The high market rents indicate a potentially lucrative investment opportunity, but the constraints imposed by the FMR for Section 8 voucher holders mean that investors must carefully consider their target market. To determine if this ZIP code is cash-flow positive at FMR, we need to look at the typical rental yields. Given the Zillow median price for a 2BR unit is $223,801, and assuming a conservative cap rate of 5%, the expected annual rental income would be around $11,190, or about $933 per month. This is well below the FMR of $1580, indicating that properties priced at or near the FMR could generate positive cash flow for investors. However, the investment grade is heavily influenced by the local market conditions. With a tight occupancy rate and high demand, investors who can provide quality units at or near the FMR may find a receptive audience among voucher holders. Conversely, investors looking to maximize returns through market-rate rentals will face competition and may need to offer amenities or upgrades to attract tenants willing to pay higher rents. #### Specific Actionable Insights 1. **Focus on Affordable Units**: Investors should focus on acquiring or developing 2BR and smaller units that can be rented at or near the FMR. For example, a 2BR unit priced at $1580 per month could attract Section 8 voucher holders and generate steady, predictable cash flow. 2. **Quality Over Quantity**: Given the high demand and tight market, offering high-quality, well-maintained units can help secure tenants willing to pay slightly above the FMR. For instance, a 2BR unit priced at $1650 per month might still be attractive to some voucher holders, especially if it offers better amenities or location advantages. 3. **Consider Location-Specific Amenities**: Properties located in areas with good access to public transportation, schools, and healthcare facilities are likely to be more competitive. Adding amenities such as laundry facilities, parking, and security features can also enhance the appeal of a property to both voucher holders and market-rate renters. #### Bottom Line For Section 8-focused investors, ZIP code 93308 presents a mixed picture. While the high market rents make it challenging for voucher holders to find suitable housing, the strong demand and tight occupancy rate suggest that there is potential for positive cash flow if investors can provide quality units at or near the FMR. **Recommendation**: **Hold**. Investors should hold onto properties that are already priced at or near the FMR, as these are likely to remain in high demand. However, new investments should be carefully considered, focusing on units that can be rented at or slightly above the FMR to balance affordability with profitability. In summary, while the market is tight and rents are high, there is a significant segment of the population that relies on Section 8 vouchers. Providing affordable, quality housing in this ZIP code can be a viable strategy for investors looking to serve this demographic.

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.