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 | $2,160 |
| 1 Bedroom | $2,220 |
| 2 Bedrooms | $2,680 |
| 3 Bedrooms | $3,600 |
| 4 Bedrooms | $3,920 |
| 5 Bedrooms | $4,547 |
| 6 Bedrooms | $5,093 |
| 7 Bedrooms | $5,500 |
| 8 Bedrooms | $5,775 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,220 | $780,019 | 0.28% | F |
| 2BR | $2,680 | $1,090,011 | 0.25% | F |
| 3BR | $3,600 | $1,463,845 | 0.25% | F |
| 4BR | $3,920 | $1,961,710 | 0.2% | F |
| 5BR | $4,547 | $2,513,621 | 0.18% | F |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP 93924, Carmel Valley, California, for fiscal year 2024 is set at $3220. This figure represents the payment standard for Section 8 housing vouchers, which is the amount the government will pay to cover a portion of the rent for eligible tenants. It does not represent the total rent you can charge; rather, it's the ceiling on what the voucher program will contribute towards rent.
To put this into perspective, the average rent for properties in Carmel Valley, according to the latest Census American Community Survey (ACS), is $1,946. This indicates that the FMR is higher than the typical market rate, making it a potentially attractive option for landlords who want to ensure steady income from reliable tenants. The difference between the FMR and the average rent suggests that landlords could still charge a premium above the government contribution, although this would reduce the pool of eligible tenants.
The 19.8% of households that are renters in Carmel Valley signifies a moderate demand for rental properties. However, given the high FMR compared to the average rent, there is likely a significant number of low-income families who would be interested in Section 8 rentals. This can help fill vacancies and provide a stable source of income.
Acquiring a property in this area for a Section 8 rental can be costly. The median home value in Carmel Valley is around $1,453,871. This high price point may make it challenging for new investors to enter the market without substantial capital. However, the long-term stability and guaranteed income from Section 8 can offset some of the initial investment risks.
Before committing to a Section 8 rental, one critical factor to verify is the property’s compliance with Housing Quality Standards (HQS). These standards ensure that the property meets basic safety and habitability criteria. Ensuring your property passes an HQS inspection is essential because failing to meet these requirements can lead to penalties and loss of rental income.
In summary, the FMR of $3220 for ZIP 93924 provides a clear benchmark for government contributions towards rent. With an average rent of $1,946, there is room to charge a bit more, but this must be balanced against the potential tenant pool. The 19.8% renter share indicates moderate demand, while the high median home value reflects the significant upfront investment required. Compliance with HQS is non-negotiable and should be confirmed before proceeding with a Section 8 rental.
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.