Location: San Luis Obispo-Paso Robles, CA | Metro: San Luis Obispo-Paso Robles, 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 | $1,660 |
| 1 Bedroom | $1,840 |
| 2 Bedrooms | $2,410 |
| 3 Bedrooms | $3,230 |
| 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 |
|---|---|---|---|---|
| 1BR | $1,840 | $884,396 | 0.21% | F |
| 2BR | $2,410 | $1,119,114 | 0.22% | F |
| 3BR | $3,230 | $1,516,064 | 0.21% | F |
| 4BR | $3,700 | $1,899,733 | 0.19% | F |
U.S. Census Bureau data (2024)
The real estate landscape in Cayucos, California (ZIP 93430), is characterized by a median home value of $1,346,696. This figure underscores the premium nature of the housing market in this coastal community. Despite the high median value, only 0.2% of listings have seen price reductions, indicating a robust demand that supports current pricing levels. The absence of a reported median days on market (DOM) suggests that homes are selling quickly, often before reaching a typical DOM period, which further signals strong buyer interest.
The data collectively imply that sellers in Cayucos possess significant pricing power over the next 12-24 months. The high median home value combined with minimal price reductions points to an environment where buyers are willing to meet asking prices without substantial negotiation. This dynamic is likely to persist as long as the local economy remains stable and the area continues to attract both second-home buyers and permanent residents drawn to its natural beauty and lifestyle.
On the rental side, the Fair Market Rent (FMR) for the zip code in fiscal year 2024 is set at $1960, while the actual market rent, as measured by Zillow's Rent Index (ZORI), stands at $2,350. This gap between the government-set FMR and the market rate highlights a potential opportunity for landlords and small-portfolio investors who can leverage the higher market rents to generate income. However, it also indicates a challenge for tenants seeking affordable housing, particularly those relying on Section 8 vouchers, which are tied to the FMR.
For long-term hold investors, the setup implies a cautious approach to expectations of rapid appreciation. While the current demand supports high home values, the limited number of price reductions and the quick sales suggest a market that might be nearing saturation. Long-term appreciation will likely depend on broader economic factors, such as job growth, population trends, and national interest rates, rather than the immediate dynamics observed in the data. Investors should consider diversifying their portfolios and being prepared for periods of slower growth.
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.