Location: Salinas, CA | Metro: Salinas, 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 | $1,970 |
| 1 Bedroom | $2,020 |
| 2 Bedrooms | $2,430 |
| 3 Bedrooms | $3,270 |
| 4 Bedrooms | $3,560 |
| 5 Bedrooms | $4,130 |
| 6 Bedrooms | $4,626 |
| 7 Bedrooms | $4,996 |
| 8 Bedrooms | $5,246 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,430 | $631,990 | 0.38% | F |
| 3BR | $3,270 | $785,640 | 0.42% | F |
| 4BR | $3,560 | $868,691 | 0.41% | F |
| 5BR | $4,130 | $937,627 | 0.44% | F |
U.S. Census Bureau data (2024)
The classification of ZIP 93901 (Salinas, CA) hinges on a balance between yield and stability, key factors for any landlord or small-portfolio investor. The Fair Market Rent (FMR) for the area in fiscal year 2024 is set at $2,700, significantly higher than the market rent of $2,341. This suggests a potential high-yield opportunity for those who can navigate the rental landscape effectively. However, the median home value of $774,144 indicates a relatively expensive property market, which could impact acquisition costs.
Stability in the market is influenced by the percentage of renters, which stands at 56.6%, a substantial figure that supports ongoing rental demand. While the days on market (DOM) data is not available, the median household income of $91,233 provides insight into the economic health of the area. This income level, though not exceptionally high, is sufficient to support rental payments, especially given the market rent is lower than the FMR.
In summary, ZIP 93901 leans towards a steady-cashflow zone rather than a high-yield/low-stability flip-style market. The strong rental percentage ensures a stable tenant pool, and the income levels support the ability to pay rent. Although there is an opportunity for higher yields due to the FMR being above the market rent, the high median home value suggests that property flipping might be less profitable compared to long-term rental investments. Landlords and investors should focus on properties that can be rented at or near the FMR to maximize returns while maintaining a stable investment portfolio.
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.