Section 8 Fair Market Rent (FMR) for ZIP 93455 - 2027

Investment Score for ZIP 93455

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	$2,720
1 Bedroom	$2,980
2 Bedrooms	$3,410
3 Bedrooms	$4,380
4 Bedrooms	$5,000
5 Bedrooms	$5,800
6 Bedrooms	$6,496
7 Bedrooms	$7,016
8 Bedrooms	$7,367

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
2BR	$3,410	$521,260	0.65%	D
3BR	$4,380	$703,813	0.62%	D
4BR	$5,000	$801,860	0.62%	D
5BR	$5,800	$924,201	0.63%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 93455 (Santa Maria, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 93455 in Santa Maria, CA, indicate that the rent for a two-bedroom apartment is set at $3,410 per month in 2026. This represents 37.0% of the median household income of $110,661, which suggests that the FMR is reasonably aligned with the local economic conditions. However, the actual rental market prices can be significantly higher. For instance, the Zillow median price for a two-bedroom home is $508,988, which translates into a monthly mortgage payment far exceeding the FMR. The price-to-FMR ratio of 12.4x indicates that the actual market rents are substantially higher than what the FMR allows. This creates a significant constraint for voucher holders, who may struggle to find units that accept their vouchers due to the high cost of living in the area. Landlords might prefer market-rate tenants over those with Section 8 vouchers because the latter are limited by the FMR. Therefore, voucher holders face a challenging situation where they must compete with higher-paying tenants for fewer available units. #### Affordability & Renter Profile ZIP code 93455 has a population of 44,611, with 23.7% of residents being renters. The occupancy rate stands at 96.3%, suggesting that the rental market is relatively tight. Given the high median household income and the fact that 23.7% of the population are renters, it is likely that the typical renter in this area is financially stable but may still benefit from affordable housing options. The high occupancy rate also implies that there is little vacancy, making it a competitive environment for both landlords and tenants. The affordability issue is exacerbated by the high price-to-FMR ratio. With market rents being so much higher than the FMR, it is clear that the rental market is not easily accessible for low-income families without assistance. This tight market means that the demand for affordable units is likely outstripping supply, leading to potential challenges for both renters and landlords. #### Investor Angle From an investor perspective, the ZIP code 93455 presents a mixed picture. While the rental market is robust and the occupancy rates are high, the FMR is significantly lower than the market rent. To determine if this ZIP code is cash-flow positive at FMR, we need to consider the typical expenses associated with renting out a property. Assuming a conservative estimate of 50% of the FMR for expenses (including taxes, insurance, maintenance, and other costs), the net income would be around $1,705 per month for a two-bedroom unit. This is a modest amount compared to the potential market rent, which could be much higher. Given the high price-to-FMR ratio, the investment grade for properties in this ZIP code would be considered low for Section 8-focused investors. The primary reason is that the FMR is not reflective of the actual market value, leading to potentially lower returns on investment. Investors should carefully weigh the benefits of accepting Section 8 vouchers against the opportunity cost of renting to market-rate tenants. #### Specific Actionable Insights 1. **Focus on Multi-Bedroom Units**: Given the high FMR for larger units (e.g., 3BR and 4BR), investors might consider focusing on multi-bedroom properties. The FMR for a three-bedroom unit is $4,450, which is still a substantial amount and could provide better cash flow compared to smaller units. Additionally, larger units are often in higher demand, particularly among families. 2. **Consider Property Enhancements**: Since the rental market is tight and competition is high, property enhancements could make a significant difference. By improving the quality of the property, landlords can justify higher rents while still remaining within the FMR guidelines. This could include upgrades to appliances, finishes, and amenities that attract Section 8 tenants looking for better living conditions. 3. **Explore Alternative Funding Sources**: Given the high price-to-FMR ratio, traditional rental income alone may not be sufficient for profitability. Investors could explore alternative funding sources such as government grants, tax credits, or subsidies designed to support affordable housing initiatives. These additional funds could help bridge the gap between the FMR and the actual operating costs of the property. #### Bottom Line For Section 8-focused investors, the ZIP code 93455 (Santa Maria, CA) is a challenging market due to the high price-to-FMR ratio and the tight rental market. The recommendation would be to **Skip** this ZIP code unless you can secure properties at a discount or have access to additional funding sources. The potential for cash flow is limited, and the overall investment grade is low given the constraints imposed by the FMR. If you do decide to invest, focus on larger units and consider property enhancements to maximize your chances of attracting tenants and maintaining profitability.

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.