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 | $1,300 |
| 1 Bedroom | $1,310 |
| 2 Bedrooms | $1,700 |
| 3 Bedrooms | $2,350 |
| 4 Bedrooms | $2,840 |
| 5 Bedrooms | $3,294 |
| 6 Bedrooms | $3,689 |
| 7 Bedrooms | $3,984 |
| 8 Bedrooms | $4,183 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,310 | $242,219 | 0.54% | F |
| 2BR | $1,700 | $323,386 | 0.53% | F |
| 3BR | $2,350 | $414,481 | 0.57% | F |
| 4BR | $2,840 | $517,502 | 0.55% | F |
| 5BR | $3,294 | $600,142 | 0.55% | F |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 93561, which encompasses Tehachapi, CA, is fundamentally about the discrepancy between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $1330, while the Zillow Observed Rent Index (ZORI) indicates a market rent of $2010. This creates a gap of $680 per month, representing a significant 33.8% difference.
Given that the FMR is lower than the market rent, landlords accepting Section 8 vouchers must understand the implications of renting below open-market rates. The cost of housing voucher tenants below market rates means landlords will receive $680 less per unit each month compared to what they could earn by renting to non-voucher holders. However, this lower rental income is offset by the security and reliability of receiving timely payments through the voucher program, which is crucial for maintaining cash flow stability.
In the broader context of Tehachapi, where only 20.2% of residents are renters, landlords might consider the benefits of participating in the Section 8 program. Despite the lower income from FMR, the program ensures a steady stream of tenants, reducing vacancy rates and the associated costs. Additionally, the median home value in Tehachapi is $424,036, and the median household income is $87,357, indicating that the local economy is somewhat stable but also showing that there is a need for affordable housing options. Section 8 can be a viable strategy for landlords looking to serve a segment of the population that might otherwise struggle to find suitable housing.
Landlords should weigh the decision to accept Section 8 vouchers carefully. While it means earning less than the market rate, the program's structure can provide financial predictability and help meet the housing needs of low-income families in Tehachapi. This makes the Section 8 program an attractive option for those focused on long-term, consistent yields rather than maximizing short-term rental income.
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.