Location: San Benito County, CA | Metro: Salinas, CA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,990 |
| 1 Bedroom | $2,020 |
| 2 Bedrooms | $2,620 |
| 3 Bedrooms | $3,550 |
| 4 Bedrooms | $3,780 |
| 5 Bedrooms | $4,385 |
| 6 Bedrooms | $4,911 |
| 7 Bedrooms | $5,304 |
| 8 Bedrooms | $5,569 |
U.S. Census Bureau data (2024)
The ZIP code 93925 is located in a suburban neighborhood characterized by a relatively small population of 1,241 residents. A significant portion of these residents, 60.5%, are renters, indicating a strong demand for rental properties in the area. The median household income in this ZIP code stands at $72,604, which suggests that the local economy supports a middle-class lifestyle. The median home value of $712,599 reflects a community where homeownership is valued and financially feasible for many.
From an investment perspective, the rent economics in ZIP 93925 present a compelling opportunity. The Fair Market Rent (FMR) for the area, set at $2,410 for fiscal year 2024, is notably higher than the average market rent of $1,375 as reported by the Census Bureau's American Community Survey (ACS). This discrepancy highlights the potential profitability for landlords who can secure Section 8 tenants willing to pay the higher FMR rate.
The question then becomes whether ZIP 93925 suits a hands-off voucher operator or requires a more hands-on approach from a value-add buyer. Given the high percentage of renters and the disparity between FMR and market rents, a hands-off operator could find success by leveraging the guaranteed income from Section 8 vouchers. However, the potential for value-add strategies is also evident, particularly if there are opportunities to improve property conditions or amenities to justify rents closer to the FMR level.
In summary, ZIP 93925 offers a stable demographic foundation for rental investments, with a robust demand for housing and a favorable economic environment. Investors should consider both the immediate benefits of Section 8 vouchers and the long-term potential for increasing rental values through strategic improvements.
Data Sources: FMR data from HUD (2027). 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.