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 | $1,890 |
| 1 Bedroom | $2,080 |
| 2 Bedrooms | $2,720 |
| 3 Bedrooms | $3,630 |
| 4 Bedrooms | $4,210 |
| 5 Bedrooms | $4,884 |
| 6 Bedrooms | $5,470 |
| 7 Bedrooms | $5,908 |
| 8 Bedrooms | $6,203 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,080 | $535,472 | 0.39% | F |
| 2BR | $2,720 | $633,912 | 0.43% | F |
| 3BR | $3,630 | $824,534 | 0.44% | F |
| 4BR | $4,210 | $975,065 | 0.43% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP 93433, Grover Beach, CA, within the San Luis Obispo-Paso Robles, CA MSA, reveals key insights for potential landlords and small-portfolio investors.
First, let's examine if the rent math works. The Fair Market Rent (FMR) for ZIP 93433 in fiscal year 2024 is set at $2250. In contrast, the Zillow Observed Rent Index (ZORI) indicates a market rent of $2593. This means that landlords can expect to charge approximately $343 more per month than the FMR, which provides a positive margin and suggests that the rent math does indeed work in favor of market rates.
Second, we assess the affordability of acquisitions. The median home value in Grover Beach is $776,777. With no data available on the number of days on the market (DOM), it's challenging to gauge how quickly homes are selling. However, the 0.2% price-cut share indicates that very few homes are being discounted, suggesting a stable market where homes are likely sold at or near their asking price. This makes acquiring properties in Grover Beach relatively straightforward, assuming investors have the capital to meet the high median home values.
Third, we consider tenant demand. Grover Beach has a population of 12,600, with 49.5% of residents being renters. This significant renter share points to a robust tenant pool, making it easier for landlords to find occupants for their properties. Given the size of the population and the high percentage of renters, there is a strong likelihood of maintaining occupancy levels.
In conclusion, Grover Beach presents a viable opportunity for real estate investment. The rent math is favorable, with market rents exceeding FMR by a considerable margin. While acquisitions are not cheap, the stability of property values and the high renter share indicate a healthy demand for rental units. Landlords and investors should proceed with confidence, knowing they can charge above FMR and benefit from a consistent tenant base.
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.