Section 8 Fair Market Rent (FMR) for ZIP 93463 - 2027

Location: Santa Maria-Santa Barbara, CA | Metro: Santa Maria-Santa Barbara, CA MSA

Investment Score for ZIP 93463

Monthly Rent (2BR)

$2,820

Median Price (2BR)

$798,493

1% Rule

0.35%

Annual Yield

4.24%

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
2BR	$2,820	$798,493	0.35%	F
3BR	$3,670	$1,366,564	0.27%	F
4BR	$4,190	$1,726,063	0.24%	F
5BR	$4,860	$2,373,683	0.2%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

8,130

Median Household Income

$118,488

Housing Units

3,860

Renter Percentage

40.3%

Occupancy Rate

91.6%

Renter Occupied

1,423

Solvang, CA, located in ZIP 93463, is a charming Danish-themed town that offers a unique blend of history and modern living. Known for its picturesque landscapes and cultural attractions, Solvang has become a desirable location for both residents and tourists alike. This market analysis provides key insights into the rental and housing market trends in Solvang, highlighting areas of interest for potential landlords and small-portfolio investors.

The Fair Market Rent (FMR) for ZIP 93463 in fiscal year 2024 is set at $2,660, indicating the government's benchmark for affordable housing.
The market rent, as measured by Zillow's ZORI index, stands at $3,617, suggesting that the actual rental rates in the area exceed the FMR, providing a higher yield for investors.
The median home value in Solvang is $1,410,952, reflecting the high cost of homeownership in the area and potentially driving up rental demand.
Renters make up 40.3% of the population, showing a significant portion of the community relies on the rental market, which can be a stable source of income for landlords.
The median household income in Solvang is $118,488, indicating a relatively affluent population capable of paying higher rents.

Investors considering entering the rental market in Solvang, CA, can expect strong demand due to the town's unique appeal and the significant number of renters. The disparity between the Fair Market Rent and the actual market rent suggests opportunities for above-average returns. However, the high median home value and income levels also mean that competition for tenants could be fierce, requiring landlords to maintain high-quality properties to attract and retain residents. Overall, Solvang presents a solid investment opportunity for those willing to invest in quality rental units that cater to the town's affluent and diverse population.

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.