Location: Salinas, CA | Metro: Salinas, CA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,970 |
| 1 Bedroom | $2,050 |
| 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 |
The analysis for ZIP code 93902 reveals a complex picture due to the lack of complete data points. The Fair Market Rent (FMR) for a two-bedroom apartment in fiscal year 2024 is set at $2880 annually. However, without the median home value and the current market rent, we can only provide a partial view.
To calculate the gross yield, we need to compare the annual rental income to the property's value. In the case of Section 8, using the FMR of $2880, if we hypothetically assume a median home value for ZIP 93902, the gross yield would be derived from that. For example, if the median home value were $300,000, the gross yield would be approximately 0.96% ($2880 / $300,000).
Without the actual market rent, it's impossible to give a precise comparison to the Section 8 FMR. However, the absence of market rent data suggests that the area might have limited rental activity, which could make Section 8 a more stable option for landlords.
The renter density and days on market (DOM) are also not available, which means we cannot determine how competitive the rental market is or how quickly properties are being rented. This lack of data makes it difficult to assess the realism of either scenario. Typically, higher renter density and shorter DOM indicate a more active rental market, where market rents might exceed FMRs. Conversely, lower renter density and longer DOM suggest a less active market, making Section 8 a more reliable source of rental income.
In conclusion, while the exact gross yield cannot be calculated without the median home value and market rent, the Section 8 FMR provides a consistent baseline for rental income. Landlords should consider the stability offered by Section 8 versus the potential risks and uncertainties of relying solely on market rents.
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.