Section 8 Fair Market Rent (FMR) for ZIP 93454 - 2027

Investment Score for ZIP 93454

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	$2,220
1 Bedroom	$2,480
2 Bedrooms	$2,820
3 Bedrooms	$3,670
4 Bedrooms	$4,190
5 Bedrooms	$4,860
6 Bedrooms	$5,443
7 Bedrooms	$5,878
8 Bedrooms	$6,172

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	$2,480	$344,346	0.72%	D
2BR	$2,820	$477,622	0.59%	F
3BR	$3,670	$633,316	0.58%	F
4BR	$4,190	$705,638	0.59%	F
5BR	$4,860	$778,886	0.62%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 93454 (Santa Maria, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 93454 in Santa Maria, CA, as of 2026, is set at $2730 for a two-bedroom unit. This represents 40.2% of the median household income of $81,522 in the area. However, the actual rental market price for a two-bedroom unit is significantly higher, with Zillow reporting a median price of $468,456. The price-to-FMR ratio stands at 14.3x, indicating that actual rents are far above the FMR levels. For Section 8 voucher holders, this means they face significant constraints in finding affordable housing. The FMR is only a guideline, and landlords are not required to accept it; therefore, many units may be priced well above what voucher holders can afford. #### Affordability & Renter Profile ZIP code 93454 has a high renter population percentage of 47.7%, which suggests a robust demand for rental properties. With a median household income of $81,522, the affordability of housing is a critical issue. The fact that the FMR for a two-bedroom unit is only 40.2% of the median income indicates that renters, especially those relying on Section 8 vouchers, are likely to find it challenging to secure housing that fits their budget. Given the occupancy rate of 96.7%, the market is relatively tight, with few vacant units available. This tightness could exacerbate the difficulty for low-income renters to find suitable housing. #### Investor Angle From an investor’s perspective, the ZIP code 93454 presents both opportunities and challenges. While the FMR for a two-bedroom unit is $2730, the actual rental market price is much higher, at $468,456. This suggests that investors who can secure tenants paying market rates will have a strong cash flow. However, if an investor relies solely on Section 8 voucher holders, the lower rent ceiling could make it difficult to achieve positive cash flow, especially considering the high purchase price of properties in the area. To determine the investment grade, we need to consider factors such as the potential for appreciation, the stability of the local economy, and the overall demand for rental properties. Given the high renter population and tight market conditions, there is a strong demand for rental units. However, the high price-to-FMR ratio indicates that the market is overpriced relative to the FMR guidelines, which could pose risks for investors targeting Section 8 voucher holders. #### Specific Actionable Insights 1. **Target Market-Rate Tenants**: Given the high price-to-FMR ratio, investors should focus on attracting market-rate tenants rather than relying solely on Section 8 voucher holders. The median rental price for a two-bedroom unit is $468,456, which is much higher than the FMR of $2730. By targeting these higher-paying tenants, investors can ensure better cash flow and potentially higher returns on investment. 2. **Consider Smaller Units**: If an investor wants to cater to Section 8 voucher holders, smaller units like one-bedroom apartments might be more viable. The FMR for a one-bedroom unit is $2420, which is still a significant portion of the median income but may be more manageable for voucher holders. Investors could also look into converting larger units into smaller ones to better align with FMR guidelines and attract a broader range of tenants. 3. **Evaluate Property Appreciation Potential**: Despite the high price-to-FMR ratio, the strong demand for rental properties and the high occupancy rate suggest that there is potential for property appreciation. Investors should conduct thorough due diligence on individual properties to assess their long-term value and potential for capital gains. #### Bottom Line For Section 8-focused investors, the ZIP code 93454 presents a challenging environment due to the high price-to-FMR ratio and the tight rental market. The recommendation would be to **Skip** this ZIP code if the primary goal is to rely solely on Section 8 voucher holders. Instead, investors should consider areas where the FMR is closer to the actual rental market price or where there is a higher supply of rental units relative to demand. Alternatively, investors could target market-rate tenants or smaller units to improve their chances of achieving positive cash flow.

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.