Section 8 Fair Market Rent (FMR) for ZIP 93458 - 2027

Investment Score for ZIP 93458

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	$2,310
1 Bedroom	$2,520
2 Bedrooms	$2,890
3 Bedrooms	$3,710
4 Bedrooms	$4,240
5 Bedrooms	$4,918
6 Bedrooms	$5,508
7 Bedrooms	$5,949
8 Bedrooms	$6,246

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	$2,890	$500,819	0.58%	F
3BR	$3,710	$596,493	0.62%	D
4BR	$4,240	$681,962	0.62%	D
5BR	$4,918	$708,651	0.69%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 93458 (Santa Maria, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 93458 in 2026 indicate that a two-bedroom rental unit should cost $2850 per month. However, the actual median rent for a two-bedroom unit is significantly higher, at $489,788 based on Zillow data, which translates to a monthly rent of approximately $4081. This means that the actual rent is 1.43 times higher than the FMR, as indicated by the price-to-FMR ratio of 14.3x. For voucher holders, this creates a significant constraint, as they would only be able to cover up to $2850 of the rent, leaving them with a substantial shortfall if they were to rent a typical two-bedroom unit. The FMR for a three-bedroom unit is $3720, and for a four-bedroom unit, it is $4240. These figures suggest that voucher holders have limited options when it comes to renting larger units, as the actual rents are likely to exceed their voucher limits. #### Affordability & Renter Profile ZIP code 93458 has a high percentage of renters, with 57.1% of households being renters. The median household income is $75,257, which places a significant portion of the population in a position where housing costs represent a substantial part of their budget. The fact that the FMR for a two-bedroom unit is 45.4% of the median income indicates that housing is relatively affordable for those who earn close to the median income. However, given the high actual rent prices, many lower-income residents may find it challenging to secure housing without assistance. The occupancy rate of 97.2% suggests that the rental market is tight, with few vacancies available. This tight market condition makes it difficult for renters to negotiate lower prices, especially those relying on Section 8 vouchers. #### Investor Angle From an investor perspective, the ZIP code 93458 presents a mixed picture. While the rental market is tight, the actual rent prices are much higher than the FMR. This means that properties rented at the FMR level will likely generate negative cash flow, as the actual market rent is significantly higher. For instance, a two-bedroom unit rented at the FMR of $2850 would be generating only about 70% of the actual market rent of $4081. This situation implies that properties rented at FMR levels are not cash-flow positive, making them less attractive for investors seeking immediate returns. The investment grade for this ZIP code is moderate due to the high demand and tight market conditions. However, the reliance on Section 8 vouchers for a significant portion of the rental market can introduce additional complexities, such as longer vacancy periods and increased administrative burdens. Investors must carefully consider these factors before entering the market. #### Specific Actionable Insights 1. **Target Larger Units**: Given that the FMR for larger units (three and four bedrooms) is closer to the actual market rent, investors might consider focusing on properties with three or more bedrooms. For example, a three-bedroom unit rented at $3720 would be closer to the actual market rent, potentially reducing the financial gap between FMR and market rates. 2. **Consider Non-Section 8 Tenants**: Due to the high actual rent prices, there is a significant segment of the population that can afford to pay above the FMR. Investors could explore opportunities to attract non-Section 8 tenants who are willing to pay the higher market rates. This strategy would help ensure positive cash flow and reduce dependency on government subsidies. 3. **Develop Properties Near Public Services**: Given the high percentage of renters, developing properties near public services such as schools, hospitals, and transportation hubs could make them more attractive to both Section 8 voucher holders and other renters. This approach could help mitigate the risk of long vacancy periods and improve tenant retention. #### Bottom Line For investors focused specifically on Section 8 vouchers, the ZIP code 93458 is not recommended for purchase. The high actual rent prices relative to the FMR suggest that properties rented at FMR levels will likely generate negative cash flow. Additionally, the tight market conditions and high demand for rental units mean that there is a risk of reduced tenant retention among voucher holders. A hold recommendation is more appropriate for existing investors who are already navigating the complexities of the local rental market. For new investors, it might be advisable to skip this ZIP code and look for areas where the FMR is closer to the actual market rent, ensuring better cash flow and fewer administrative challenges.

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.