Section 8 Fair Market Rent (FMR) for ZIP 93592 - 2027

FY 2027 Fair Market Rent Rates

To classify ZIP code 93592 in Unknown, CA, we need to analyze the available data on yield and stability. The Fair Market Rent (FMR) for ZIP 93592 in fiscal year 2024 is set at $1940. This figure represents the median rent for a standard two-bedroom apartment in the area, which can be used as a benchmark for rental pricing.

The lack of specific market rent and home value data complicates a full assessment of yield potential. However, the FMR of $1940 suggests that rental prices should align closely with this amount to remain competitive and attractive to tenants eligible for Section 8 housing assistance. If the actual market rent is below $1940, then landlords might see higher yields due to the subsidy. Conversely, if market rents exceed this figure, landlords may face challenges in finding tenants willing to pay the gap between the FMR and the market rate.

Moving on to stability, there is insufficient data on the percentage of renters, average days on market (DOM), and median income levels in ZIP 93592. Without these figures, it's challenging to provide a precise analysis of the stability of the rental market. Typically, higher percentages of renters and shorter DOM periods indicate a stable market where properties are consistently occupied and there's less risk of vacancies. Similarly, higher median incomes suggest that tenants are more likely to afford their share of the rent and maintain timely payments.

Given the limited data, ZIP 93592 appears to be a market where yield is relatively predictable due to the defined FMR, but stability remains uncertain. Landlords and investors should focus on understanding local tenant demand and the availability of Section 8 vouchers before making investment decisions. Engaging with local real estate agents or conducting a deeper dive into the specific neighborhood dynamics within ZIP 93592 could provide clearer insights into stability factors.

In conclusion, ZIP 93592 leans towards being a steady-cashflow zone given the known FMR, but the absence of other critical data points makes it difficult to definitively categorize it as either high-yield/low-stability or a fully stable market. The key driver here is the $1940 FMR, which sets a clear expectation for rental income. Additional research would be necessary to fully gauge the stability and long-term viability of investments in this ZIP code.

Data Sources: FMR data from HUD (2027).

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.