Section 8 Fair Market Rent (FMR) for ZIP 93421 - 2027

FY 2027 Fair Market Rent Rates

The classification of ZIP 93421 (Arroyo Grande, CA) on the yield and stability axes requires specific data points that were partially provided. The Fair Market Rent (FMR) for ZIP 93421 in fiscal year 2024 is set at $2270. However, the lack of precise market rent and median home value data makes a direct comparison challenging. Based on the available information, let's focus on what we can infer.

On the yield axis, given the FMR of $2270, landlords can expect a relatively stable rental income if their properties qualify for Section 8 housing. This figure represents a benchmark for rental rates in the area, which could be leveraged for properties in need of rental assistance.

Regarding stability, the absence of key metrics such as the percentage of renters, average days on market (DOM), and median household income means we cannot definitively classify the stability of the market. These missing figures would provide insight into the turnover rate of rentals and the financial health of the local population, both critical factors for long-term investment decisions.

Without these crucial data points, it's difficult to determine if ZIP 93421 is a high-yield/low-stability flip-style market or a steady-cashflow zone. However, the presence of multiple real estate listings suggests an active market, which could indicate some level of liquidity and potential for investment opportunities.

To make a more informed decision, further investigation into the local rental market trends and economic indicators is recommended. This will provide a clearer picture of the market's stability and potential yields for landlords and small-portfolio investors.

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.