Location: Bakersfield-Delano, 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 | $1,210 |
| 1 Bedroom | $1,210 |
| 2 Bedrooms | $1,580 |
| 3 Bedrooms | $2,190 |
| 4 Bedrooms | $2,640 |
| 5 Bedrooms | $3,062 |
| 6 Bedrooms | $3,429 |
| 7 Bedrooms | $3,703 |
| 8 Bedrooms | $3,888 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,580 | $194,011 | 0.81% | C |
| 3BR | $2,190 | $266,385 | 0.82% | C |
| 4BR | $2,640 | $322,083 | 0.82% | C |
U.S. Census Bureau data (2024)
The analysis of ZIP 93505, located within the Bakersfield-Delano, CA MSA, reveals several key points for landlords and small-portfolio investors. First, the rent math does not work favorably due to the significant disparity between the Fair Market Rent (FMR) and the market rent. The FMR for the zip code in fiscal year 2024 is set at $1,210, while the market rent, as measured by ZORI, stands at $1,738. This means that properties receiving Section 8 subsidies will be renting below the market rate, potentially leading to financial losses if landlords do not account for the lower rental income.
Second, the acquisition cost in ZIP 93505 is relatively affordable. The median home value is $276,453, which is a reasonable price point for investment properties. However, the lack of data on days on market (DOM) and the low percentage of homes needing price cuts (0.2%) suggest a stable housing market but also imply limited opportunities for acquiring homes at discounted prices. Landlords should expect to pay close to the median value when purchasing properties.
Third, there is a notable tenant demand in ZIP 93505. With a population of 14,353, and 44.6% of residents being renters, the pool of potential tenants is substantial. This high renter share indicates a strong interest in rental housing, which can be beneficial for landlords looking to fill their units quickly.
In conclusion, ZIP 93505 presents a mixed picture for real estate investment. While the renter demand is high and the median home value is affordable, the rent math poses a challenge due to the gap between subsidized rents and market rates. Landlords must carefully consider these factors and possibly look into other sources of revenue or cost-saving measures to ensure profitability. Despite the financial constraints, the high proportion of renters makes it a viable option for those willing to navigate the complexities of Section 8 properties.
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.