Section 8 Fair Market Rent (FMR) for ZIP 93446 - 2027

Investment Score for ZIP 93446

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

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

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$2,080	$410,697	0.51%	F
2BR	$2,720	$516,879	0.53%	F
3BR	$3,630	$742,033	0.49%	F
4BR	$4,210	$937,516	0.45%	F
5BR	$4,884	$1,292,446	0.38%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 93446 (Paso Robles, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 93446, as per the 2026 figures, is set at $2480 for a two-bedroom unit. This represents 30.4% of the median household income of $97,943. However, the actual rent prices in the area are significantly higher. The Zillow median price for a two-bedroom unit is $515,112, which translates to a price-to-FMR ratio of 17.3 times. This means that the actual rental prices are far above what the FMR suggests, creating a significant challenge for Section 8 voucher holders who are constrained by the FMR limits. For instance, a three-bedroom unit has an FMR of $3330, but if the actual rental prices follow the same trend, they would be much higher, making it difficult for voucher holders to find suitable housing. #### Affordability & Renter Profile In Paso Robles, the population stands at 45,554, with 31.8% being renters. Given the high median household income of $97,943, the local economy supports a relatively affluent tenant base. However, the occupancy rate of 88.0% indicates that there is a strong demand for rental properties, suggesting that the market is tight rather than oversupplied. The high price-to-FMR ratio further underscores the affordability challenges faced by lower-income renters, particularly those relying on Section 8 vouchers. With the FMR for a two-bedroom unit at $2480, only a small portion of the available rental units will fall within this range, making it a competitive environment for voucher holders. #### Investor Angle From an investor perspective, the ZIP code 93446 presents both opportunities and challenges. The FMR for a two-bedroom unit is $2480, but the actual median rental price is much higher at $515,112. This discrepancy means that investors can potentially achieve higher rental yields if they can secure tenants willing to pay the market rates. However, for those focusing specifically on Section 8 vouchers, the cash flow might be negative due to the significant gap between FMR and market rents. The investment grade for this ZIP code would likely be considered moderate to low for Section 8-focused investors, given the limited number of units that fall within the FMR range and the stringent requirements of the program. #### Specific Actionable Insights 1. **Focus on Units Below FMR**: Investors should consider acquiring properties that are priced below the FMR to cater to Section 8 voucher holders. For example, a two-bedroom unit priced at $2480 or less would be more attractive to these tenants, ensuring better occupancy rates and stable cash flow. 2. **Consider Alternative Rental Programs**: Given the high price-to-FMR ratio, investors might want to explore alternative rental assistance programs or subsidies that offer higher rent allowances. This could help bridge the gap between FMR and market rents, making properties more accessible to lower-income tenants. 3. **Diversify Tenant Base**: To mitigate risks associated with the limited availability of affordable units, investors could diversify their tenant base by offering a mix of market-rate and subsidized rentals. This approach would balance the financial impact of lower rents with the stability provided by higher-paying tenants. #### Bottom Line For investors focused solely on Section 8 vouchers, the ZIP code 93446 (Paso Robles, CA) presents a challenging environment due to the high price-to-FMR ratio and limited number of units that fall within the FMR range. Therefore, the recommendation is to **skip** this market unless you can acquire properties priced significantly below the FMR. If you are willing to diversify your tenant base and consider alternative rental assistance programs, then a **hold** strategy might be more appropriate. Otherwise, the tight market and high rental prices make it difficult to achieve positive cash flow purely through Section 8 vouchers.

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.