Section 8 Fair Market Rent (FMR) for ZIP 93551 - 2027

Investment Score for ZIP 93551

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	$2,500
1 Bedroom	$2,790
2 Bedrooms	$3,440
3 Bedrooms	$4,360
4 Bedrooms	$4,880
5 Bedrooms	$5,661
6 Bedrooms	$6,340
7 Bedrooms	$6,847
8 Bedrooms	$7,189

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	$3,440	$409,389	0.84%	C
3BR	$4,360	$531,993	0.82%	C
4BR	$4,880	$601,933	0.81%	C
5BR	$5,661	$679,239	0.83%	C

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 93551 (Palmdale, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 93551, as of 2026, is set at $2990 for a two-bedroom unit. This amount represents 29.9% of the median household income in Palmdale, which stands at $119,801. The FMR for a three-bedroom unit is $3790, and for a four-bedroom unit, it is $4220. These figures are crucial for understanding the dynamics of Section 8 vouchers in the area. Actual rental prices can be significantly higher than the FMR. For instance, the Zillow median price for a two-bedroom home in Palmdale is $411,547. However, this figure reflects home values rather than rental prices. To get a sense of rental affordability, we can look at the price-to-FMR ratio, which is 11.5x for a two-bedroom unit. This means that the average rent for a two-bedroom unit is likely much higher than the FMR. Given these high ratios, there are significant constraints for voucher holders. They might struggle to find units that accept their vouchers due to the limited supply of affordable rentals. Additionally, landlords who do accept vouchers might face challenges in covering their costs if they rely solely on the FMR. #### Affordability & Renter Profile In ZIP code 93551, only 21.2% of the population are renters, indicating a relatively low demand for rental properties compared to homeownership. With a median household income of $119,801, the majority of residents are likely able to afford homeownership. The occupancy rate of 94.4% suggests that the market is quite tight, with few vacant units available. Despite the high median income, the 21.2% of renters represent a substantial number of individuals who might benefit from Section 8 vouchers. However, the high price-to-FMR ratio indicates that finding affordable housing is challenging. This tight market could lead to increased competition among renters, making it difficult for those with lower incomes to secure housing. #### Investor Angle From an investor’s perspective, the ZIP code 93551 presents a mixed picture when considering cash flow and investment grade based on the FMR. The FMR for a two-bedroom unit is $2990, but given the high price-to-FMR ratio, actual rents are likely much higher. If an investor aims to operate strictly within the FMR guidelines, they would need to ensure that their property management costs and mortgage payments align with this lower rent. However, operating at the FMR level would likely result in negative cash flow for most investors, especially considering the high cost of living and property maintenance in the area. The investment grade would be low if relying solely on FMR rents, as the actual market rents far exceed the FMR. #### Specific Actionable Insights 1. **Target Larger Units**: Given the high FMR for larger units (three-bedroom and above), investors should consider targeting these unit types. The FMR for a three-bedroom unit is $3790, and for a four-bedroom unit, it is $4220. These higher FMRs provide better opportunities for positive cash flow while still being within the acceptable range for Section 8 vouchers. 2. **Consider Mixed-Income Developments**: Investors could explore developing mixed-income communities where some units are rented at market rates and others are reserved for Section 8 voucher holders. This approach can help balance cash flow and ensure compliance with local regulations and community needs. #### Bottom Line For Section 8-focused investors, ZIP code 93551 presents a challenging environment due to the high price-to-FMR ratio and the tight rental market. The recommendation is to **Skip** this ZIP code unless you can target larger units or develop mixed-income properties. Operating strictly within the FMR guidelines would likely result in negative cash flow, making it less attractive for typical investment strategies.

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.