Location: Bakersfield-Delano, CA | Metro: Bakersfield-Delano, CA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,270 |
| 1 Bedroom | $1,280 |
| 2 Bedrooms | $1,660 |
| 3 Bedrooms | $2,300 |
| 4 Bedrooms | $2,770 |
| 5 Bedrooms | $3,213 |
| 6 Bedrooms | $3,599 |
| 7 Bedrooms | $3,887 |
| 8 Bedrooms | $4,081 |
ZIP 93380, located within the Bakersfield-Delano, CA MSA, can serve as a cash-flow anchor within a Section 8 portfolio strategy. The Fair Market Rent (FMR) for ZIP 93380 in fiscal year 2024 is set at $1260 for a one-bedroom unit. While specific data on market rents and median home values for ZIP 93380 is not available, broader trends from the Bakersfield area indicate a stable market.
The median home value in Bakersfield increased from $381,000 in 2023 to $399,500, representing a modest 2.4% increase. This stability suggests that the housing market in ZIP 93380 is also likely to be consistent, making it a reliable choice for generating steady rental income.
A cash-flow anchor property ensures a landlord maintains positive cash flow even during economic downturns. Given the FMR of $1260 and the lack of significant price cuts or extended days on market (DOM), properties in ZIP 93380 can reliably provide rental income that meets or exceeds the FMR, thus serving as a solid foundation for a Section 8 portfolio.
The consistent total home sales in Bakersfield, with only a slight decrease from 4,589 in December 2022 to 4,582 in December 2023, further supports the idea that ZIP 93380 is a stable market. With limited inventory and strong demand, landlords can expect to maintain occupancy rates and secure a steady stream of rental income.
In summary, ZIP 93380 should be considered as a cash-flow anchor within a Section 8 portfolio strategy due to its stable housing market and the likelihood of maintaining rental income at or above the FMR of $1260.
Data Sources: FMR data from HUD (2027).
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.