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 |
|---|---|---|---|---|
| 2BR | $2,410 | $536,907 | 0.45% | F |
| 3BR | $3,230 | $734,059 | 0.44% | F |
| 4BR | $3,700 | $844,523 | 0.44% | F |
U.S. Census Bureau data (2024)
The rental market in ZIP 93445, located in Oceano, CA, presents a unique challenge for both renters and landlords. The median household income stands at $72,261, which needs to be carefully considered against the market rate of $1,615 for housing rentals. This figure is derived from the latest Census American Community Survey (ACS) data.
To put this into perspective, let's compare it with the Fair Market Rent (FMR) set by the Department of Housing and Urban Development (HUD), which is $1,870 for the fiscal year 2024. This means that the market rate is slightly below the HUD standard, indicating that while renters might find some relief in the actual market rates, they still face significant financial pressure to cover their housing costs.
The affordability gap is stark. A household earning the median income would need to allocate nearly 25% of their monthly earnings towards rent at the market rate, and even more—about 28%—to meet the HUD standard. Given that 39.2% of the 6,857 residents are renters, this highlights a substantial portion of the population struggling to find affordable housing options.
For landlords, this means intense competition for tenants who can afford the higher rents closer to the FMR. Those willing to accept lower rents will likely have an easier time finding tenants but may see reduced profit margins. Voucher holders, who can receive up to $1,870 under the fiscal year 2024 standards, represent a stable tenant pool that can help mitigate risks associated with non-payment and frequent turnover.
The takeaway for landlords considering voucher versus cash-pay strategies is clear. While cash-paying tenants might offer flexibility, voucher holders provide a guaranteed source of income, often up to the FMR, reducing the financial burden on tenants and increasing the likelihood of long-term occupancy. In a market where affordability is a concern, embracing voucher tenants could be a strategic advantage for landlords looking to secure steady rental income.
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.