Section 8 Fair Market Rent (FMR) for ZIP 93405 - 2027

Location: San Luis Obispo-Paso Robles, CA | Metro: San Luis Obispo-Paso Robles, CA MSA

Investment Score for ZIP 93405

Monthly Rent (2BR)

$2,820

Median Price (2BR)

$788,539

1% Rule

0.36%

Annual Yield

4.29%

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	$1,960
1 Bedroom	$2,160
2 Bedrooms	$2,820
3 Bedrooms	$3,770
4 Bedrooms	$4,360
5 Bedrooms	$5,058
6 Bedrooms	$5,665
7 Bedrooms	$6,118
8 Bedrooms	$6,424

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	$2,820	$788,539	0.36%	F
3BR	$3,770	$1,071,308	0.35%	F
4BR	$4,360	$1,289,007	0.34%	F
5BR	$5,058	$1,523,739	0.33%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

25,002

Median Household Income

$60,399

Housing Units

9,858

Renter Percentage

65.3%

Occupancy Rate

90.1%

Renter Occupied

5,803

ZIP code 93405, located in San Luis Obispo, CA, sits within the San Luis Obispo-Paso Robles, CA MSA. Its Fair Market Rent (FMR) for fiscal year 2024 is set at $2510, while the average market rent stands at $4,146. The median home value in this ZIP is $1,101,407, and 65.3% of its residents are renters.

Compared to typical ZIP codes within the San Luis Obispo-Paso Robles, CA MSA, ZIP 93405 exhibits characteristics of a mid-tier neighborhood. This classification is based on the following observations:

The FMR of $2510 suggests that the area is not at the bottom end of the rental spectrum, which is indicative of a moderate cost of living relative to other ZIP codes in the metro.
The market rent of $4,146 is higher than the FMR but still represents a middle-ground when considering the broader range of rents across the MSA.
A median home value of $1,101,407 places it above average for the region, aligning with the notion of being a mid-tier neighborhood rather than a premium sub-market where home values would be significantly higher.
The 65.3% renter share is notably high, suggesting a strong demand for rentals in this ZIP. However, this does not necessarily indicate a Section 8 sweet spot since the home values are above the metro average, implying a more affluent demographic.

While there is a notable divergence between the high renter share and the relatively high home values, this does not definitively signal a Section 8 sweet spot. Instead, it indicates a mixed housing market where both homeownership and renting are prevalent, but the rental market is particularly robust. Landlords and small-portfolio investors should consider these factors when evaluating investment opportunities in ZIP 93405.

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.