Section 8 Fair Market Rent (FMR) for ZIP 93311 - 2027

Investment Score for ZIP 93311

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	$1,860
1 Bedroom	$1,870
2 Bedrooms	$2,430
3 Bedrooms	$3,360
4 Bedrooms	$4,060
5 Bedrooms	$4,710
6 Bedrooms	$5,275
7 Bedrooms	$5,697
8 Bedrooms	$5,982

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
2BR	$2,430	$383,381	0.63%	D
3BR	$3,360	$423,469	0.79%	D
4BR	$4,060	$495,246	0.82%	C
5BR	$4,710	$560,887	0.84%	C

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 93311 (Bakersfield, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 93311 is set by HUD for 2026 as follows: - 0BR: $1630 - 1BR: $1640 - 2BR: $2140 (which is 22.1% of the median household income) - 3BR: $2980 - 4BR: $3590 To understand how these figures compare to actual rents, we need to consider the typical rental prices in the area. The FMRs are designed to reflect the average rent levels in the market, but they can sometimes be lower than what landlords actually charge. For instance, the FMR for a 2BR unit is $2140, which is significantly below the Zillow median price for a 2BR home, which stands at $382,220. This suggests that the actual rental market may be higher than the FMR, creating potential constraints for voucher holders who might find it difficult to secure housing within their budget. #### Affordability & Renter Profile ZIP code 93311 has a population of 55,555, with 29.1% of residents being renters. The occupancy rate is high at 95.8%, indicating a strong demand for rental properties. Given the median household income of $116,263, the affordability of renting a 2BR unit at $2140 (22.1% of median income) is relatively good for the majority of residents. However, the price-to-FMR ratio for a 2BR unit is 14.9x, suggesting that the market is quite tight and that rents are generally higher than the FMR. This could make it challenging for low-income households to find affordable housing without assistance. #### Investor Angle From an investor perspective, the ZIP code 93311 appears to be a cash-flow positive market for those focusing on Section 8 vouchers. The high occupancy rate and strong demand for rental properties indicate a robust market. However, the price-to-FMR ratio of 14.9x for a 2BR unit implies that the purchase cost of properties is significantly higher than the rental income they generate based on FMR. This means that while there is a demand for rentals, the initial investment required to enter the market is substantial. The investment grade for this ZIP code would likely be moderate to high due to the strong demand and relatively high median income. However, the challenge lies in finding properties that are priced within the FMR range, given the high market values. Investors should carefully evaluate the local rental market and consider the possibility of negotiating with landlords to ensure that rents are within the FMR guidelines. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors might want to focus on smaller units such as 0BR or 1BR apartments. These units have FMRs of $1630 and $1640 respectively, which are lower than the Zillow median prices. This could help in securing properties that are more aligned with the FMR, thereby ensuring better cash flow. 2. **Negotiate with Landlords**: Since the actual rental prices are much higher than the FMR, investors should be prepared to negotiate with landlords to bring rents down to the FMR levels. This will be crucial in making the investment viable for Section 8 voucher holders. 3. **Consider Multifamily Properties**: Investing in multifamily properties could be a strategic move. While the purchase price might still be high, the ability to spread costs across multiple units and potentially achieve economies of scale could improve the overall financial viability of the investment. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 93311 is to **Hold**. The market is tight, with high demand and occupancy rates, but the purchase prices are significantly above the FMR. This makes it challenging to find properties that offer immediate cash flow benefits. Investors should carefully assess the local rental dynamics and consider strategies such as focusing on smaller units and negotiating with landlords to align rents with FMR. However, given the high median income and strong demand, the long-term prospects remain favorable, justifying a hold position until more opportunities arise that align with the FMR guidelines.

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.