Location: San Luis Obispo-Paso Robles, CA | Metro: Bakersfield-Delano, 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 | $1,720 |
| 1 Bedroom | $1,890 |
| 2 Bedrooms | $2,470 |
| 3 Bedrooms | $3,300 |
| 4 Bedrooms | $3,820 |
| 5 Bedrooms | $4,431 |
| 6 Bedrooms | $4,963 |
| 7 Bedrooms | $5,360 |
| 8 Bedrooms | $5,628 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $3,300 | $515,765 | 0.64% | D |
U.S. Census Bureau data (2024)
The analysis of ZIP code 93461 reveals a unique balance between yield and stability that can be particularly appealing to landlords and small-portfolio investors. The Fair Market Rent (FMR) for the area in fiscal year 2024 is set at $2,410, which is significantly higher than the average market rent of $1,771. This indicates a potential high-yield market where properties can command above-average rental rates.
However, the stability of the market is another critical factor. With 21.6% of residents being renters, the rental demand is present but not overwhelming, suggesting a moderate level of stability. The median household income of $92,482 provides insight into the financial health of the tenants, indicating that they likely have the means to pay higher rents consistently. Unfortunately, the data on days on market (DOM) is unavailable, which would have been useful for assessing how quickly properties can be rented out.
The home value in ZIP 93461 is notably high at $518,226, which suggests that the area is relatively affluent and could support higher rental prices. Given the disparity between the FMR and the market rent, there is an opportunity for landlords to increase their rental yields by positioning their properties closer to the FMR rate. However, it's important to note that the high home values might also indicate a strong owner-occupied market, which could limit the number of available rental units and potentially affect the overall rental market dynamics.
In conclusion, ZIP 93461 leans towards a high-yield market due to the significant gap between the FMR and the current market rent. The stability is moderate, given the median income levels and the percentage of renters. This makes it a suitable market for those looking to maximize rental income while maintaining a reasonable level of tenant reliability. It's not a flip-style market, as the data does not suggest a volatile rental environment. Instead, it's positioned more as a steady-cashflow zone with opportunities for higher yields.
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.