Section 8 Fair Market Rent (FMR) for ZIP 93420 - 2027

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

Investment Score for ZIP 93420

Monthly Rent (2BR)

$2,960

Median Price (2BR)

$669,613

1% Rule

0.44%

Annual Yield

5.3%

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	$2,060
1 Bedroom	$2,260
2 Bedrooms	$2,960
3 Bedrooms	$3,960
4 Bedrooms	$4,580
5 Bedrooms	$5,313
6 Bedrooms	$5,951
7 Bedrooms	$6,427
8 Bedrooms	$6,748

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	$2,260	$609,123	0.37%	F
2BR	$2,960	$669,613	0.44%	F
3BR	$3,960	$991,860	0.4%	F
4BR	$4,580	$1,399,944	0.33%	F
5BR	$5,313	$1,807,165	0.29%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

31,345

Median Household Income

$110,553

Housing Units

13,618

Renter Percentage

33.6%

Occupancy Rate

93.1%

Renter Occupied

4,263

The city of Arroyo Grande, located in San Luis Obispo County, California, is a desirable residential area known for its small-town charm and proximity to both the coast and larger urban centers. This ZIP code, 93420, offers a mix of single-family homes and rental properties, making it an attractive market for real estate investors.

Fair Market Rent (FMR): The FMR for ZIP 93420 in fiscal year 2024 is set at $2400, providing a benchmark for affordable housing standards.
Market Rent: The actual market rent, measured by Zillow's ZORI index, stands at $2,789, indicating a slightly higher demand for rentals compared to the government's affordability standard.
Median Home Value: The median home value in this area is $1,049,974, reflecting the overall desirability and economic health of the region.
Renter Share: Renter share in ZIP 93420 is 33.6%, showing that there is a significant portion of the population choosing to rent rather than own their homes.
Days on Market (DOM): Data regarding the average days on market for properties in this ZIP code is currently unavailable, but this metric is crucial for understanding how quickly properties are being sold.
Median Income: The median household income in this area is $110,553, which suggests that residents have a good financial standing to support rental payments or home purchases.

The combination of a high median home value and a substantial renter share indicates a strong market for rental properties in Arroyo Grande. The gap between the Fair Market Rent and the actual market rent shows that there is room for pricing above government standards, potentially leading to higher returns on investment. With median incomes well above the national average, tenants are likely to be financially stable, reducing the risk of vacancy. However, the lack of data on days on market means that investors should research further to understand the local sales dynamics and ensure they can find profitable opportunities in this competitive real estate environment.

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.