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 | $2,570 |
| 1 Bedroom | $2,600 |
| 2 Bedrooms | $3,160 |
| 3 Bedrooms | $4,380 |
| 4 Bedrooms | $4,820 |
| 5 Bedrooms | $5,591 |
| 6 Bedrooms | $6,262 |
| 7 Bedrooms | $6,763 |
| 8 Bedrooms | $7,101 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $3,160 | $871,776 | 0.36% | F |
| 3BR | $4,380 | $1,104,473 | 0.4% | F |
| 4BR | $4,820 | $1,297,651 | 0.37% | F |
| 5BR | $5,591 | $1,498,245 | 0.37% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP 93908, which encompasses Salinas, CA, within Monterey County, are straightforward once you understand the key figures involved. For a two-bedroom apartment in this ZIP code, the SAFMR (Section 8 Area Fair Market Rent) for FY 2024 is set at $4,320 per month. This figure represents the maximum amount that the government will pay towards the rent for a voucher holder in this specific ZIP code.
In contrast, the local market rent for a two-bedroom unit, according to the Census ACS, averages $1,878 per month. This difference between the SAFMR and the actual market rent is crucial for landlords and small-portfolio investors to grasp.
When a tenant uses a Section 8 voucher, they are responsible for paying approximately 30% of their adjusted income towards rent. This amount is known as the tenant portion. Additionally, there are utility allowances that can vary but typically do not cover the entire cost of utilities. Therefore, the total reimbursement a landlord receives from the government includes the tenant's portion plus the utility allowance.
To illustrate, if a tenant's adjusted monthly income is $1,500, they would contribute $450 (30% of $1,500) towards the rent. If the utility allowance is $200, then the total reimbursement a landlord would receive for a two-bedroom unit is $650 ($450 tenant portion + $200 utility allowance).
This brings us to the typical reimbursement gap or surplus in ZIP 93908. Given the SAFMR of $4,320 and the local market rent of $1,878, a landlord can expect to be reimbursed up to $4,320, even though the market rate is significantly lower. In practice, this means landlords often receive more than the local market rent, resulting in a surplus. However, it's important to note that the actual reimbursement will depend on the tenant's income and the utility allowance.
The surplus can be calculated by subtracting the market rent from the SAFMR. In this case, the surplus would be $2,442 per month ($4,320 - $1,878). This surplus can help offset any additional costs associated with renting to a Section 8 tenant, such as administrative fees or the need to maintain higher quality standards to meet program requirements.
Landlords should also be aware that the SAFMR is set specifically for this ZIP code, meaning it reflects the unique economic conditions of Salinas, CA. While this can provide a financial cushion compared to market rates, it's essential to manage expectations and understand that the reimbursement is capped at the SAFMR level.
In summary, landlords in ZIP 93908 can expect a significant surplus when renting to a Section 8 tenant, due to the high SAFMR relative to the local market rent. This surplus provides an opportunity for landlords to potentially earn more than they would in a purely market-driven rental scenario.
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.