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 | $2,220 |
| 1 Bedroom | $2,310 |
| 2 Bedrooms | $2,740 |
| 3 Bedrooms | $3,690 |
| 4 Bedrooms | $4,020 |
| 5 Bedrooms | $4,663 |
| 6 Bedrooms | $5,223 |
| 7 Bedrooms | $5,641 |
| 8 Bedrooms | $5,923 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,310 | $1,104,385 | 0.21% | F |
| 2BR | $2,740 | $1,683,812 | 0.16% | F |
| 3BR | $3,690 | $2,580,404 | 0.14% | F |
| 4BR | $4,020 | $3,174,288 | 0.13% | F |
| 5BR | $4,663 | $4,368,268 | 0.11% | F |
U.S. Census Bureau data (2024)
The rental landscape in ZIP 93923, Carmel-by-the-Sea, California, presents a unique scenario for both renters and landlords. The median household income here stands at $142,474, which places residents in a relatively high-income bracket compared to the national average. However, the market rate for rent, known as the Zillow Observed Rent Index (ZORI), is set at $4,484 per month. This figure represents the typical cost for renting a property in the area without any subsidies.
When considering the Federal Market Rent (FMR) for ZIP 93923, which is $3,390 for fiscal year 2024, it becomes evident that there is a significant affordability gap for those relying on housing vouchers. The FMR is the maximum amount that the government will pay towards a tenant's rent through the Housing Choice Voucher program, commonly referred to as Section 8. In Carmel-by-the-Sea, this means that voucher holders would have to cover an additional $1,094 each month to meet the market rate, a substantial sum that could be challenging for many households.
Given that 23.3% of the 12,565 population are renters, the competition for properties can be fierce. Landlords who accept Section 8 vouchers might find themselves with a steady stream of tenants willing to pay the lower FMR rate, but they should also be prepared to deal with the administrative requirements and potential delays associated with the voucher program. On the other hand, landlords who opt for cash-paying tenants can command the higher market rates, but they risk leaving their units vacant if the demand for fully-priced rentals wanes.
The takeaway for landlords is clear: accepting Section 8 vouchers can ensure a consistent and reliable source of income, albeit at a lower rate than the market allows. Cash-paying tenants offer higher monthly rents, but landlords must weigh this against the possibility of longer vacancy periods and the financial strain on renters who must make up the difference between the FMR and ZORI. In Carmel-by-the-Sea, where the cost of living is high, landlords should consider the balance between these two strategies to maximize occupancy and income stability.
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.