Location: San Luis Obispo-Paso Robles, CA | Metro: San Luis Obispo-Paso Robles, CA MSA
| 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 |
U.S. Census Bureau data (2024)
The ZIP code 93407 presents a unique challenge for both renters and landlords due to limited data on median income and market rates. However, with the Fair Market Rent (FMR) set at $2270 for fiscal year 2024, we can draw some insights into the rental landscape.
Given the lack of specific median income data, it's difficult to determine if a typical household can comfortably afford the market rate. But let's consider the FMR as a benchmark. If the market rate is higher than $2270, then many renters might find it challenging to pay without assistance. Conversely, if the market rate is lower, it could be more affordable for cash-paying tenants.
The voucher payment standard of $2270 represents a significant portion of the average renter's budget, especially if median incomes are low. This means that landlords who accept vouchers must ensure their properties meet HUD standards to receive this payment amount. Properties that do not qualify for voucher payments might struggle to compete against those that do, particularly in a small population area like 93407, where there are only 347 residents and a high percentage of renters.
The affordability gap, defined by the difference between the FMR and potential median income levels, suggests that landlords in 93407 face stiff competition from voucher-assisted rentals. Accepting vouchers can provide a steady stream of income and reduce vacancy rates, but it comes with the responsibility of maintaining housing quality standards.
Takeaway: For landlords considering whether to accept vouchers or focus on cash-paying tenants, the decision should hinge on the local market rate and the quality of your property. If the market rate is close to or above $2270, accepting vouchers can attract tenants who otherwise couldn't afford the rent. If below, focusing on cash-paying tenants might yield higher profits per unit, assuming you can fill vacancies without relying on government subsidies.
Data Sources: FMR data from HUD (2027). 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.