Location: San Luis Obispo-Paso Robles, CA | Metro: Salinas, CA MSA
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,970 |
| 1 Bedroom | $2,020 |
| 2 Bedrooms | $2,430 |
| 3 Bedrooms | $3,270 |
| 4 Bedrooms | $3,700 |
| 5 Bedrooms | $4,292 |
| 6 Bedrooms | $4,807 |
| 7 Bedrooms | $5,192 |
| 8 Bedrooms | $5,452 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,430 | $526,232 | 0.46% | F |
| 3BR | $3,270 | $653,766 | 0.5% | F |
| 4BR | $3,700 | $828,584 | 0.45% | F |
U.S. Census Bureau data (2024)
The ZIP code 93426 in Bradley, CA, presents several challenges for landlords considering Section 8 investments. Tenant turnover is a significant concern due to the disparity between the market rent of $980 and the Fair Market Rent (FMR) of $2410 for FY 2024. This difference can lead to tenants seeking higher-rent properties outside of the Section 8 program, resulting in frequent vacancies. Additionally, vacancy exposure is heightened because the days on market (DOM) data is not available, making it difficult to predict how long a unit might remain vacant. The typical home value in this area stands at $658,544, while the median household income is $102,500. These figures suggest that many residents may struggle to afford necessary maintenance and repairs, potentially leading to deferred maintenance issues that could impact property values and rental yields.
Despite these risks, the high renter share of 31.4% provides a strong foundation for Section 8 participation. A large proportion of renters typically indicates robust demand for subsidized housing, which can stabilize occupancy rates and reduce financial risks associated with vacancy. Moreover, the presence of a substantial number of renters often correlates with a higher concentration of Section 8 voucher holders, who can provide a steady stream of qualified tenants willing to pay the required portion of their income towards rent.
In conclusion, the risks of tenant turnover, vacancy exposure, and deferred maintenance in ZIP 93426 are notable. However, the high renter share suggests a solid demand base for Section 8 properties. Given these factors, the overall risk for a first-time Section 8 landlord in this area is moderate.
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.