Location: San Benito County, 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 | $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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,620 | $420,773 | 0.62% | D |
| 3BR | $3,550 | $517,279 | 0.69% | D |
| 4BR | $3,780 | $586,648 | 0.64% | D |
| 5BR | $4,385 | $689,406 | 0.64% | D |
U.S. Census Bureau data (2024)
The ZIP code 93930, encompassing King City, CA, presents a challenging landscape for renters when considering the median household income of $75,577. The market rate for rent stands at $1,530, which is a significant portion of the average income. To put this into perspective, a household earning the median income would spend approximately 26.6% of their annual income on rent alone, assuming they pay the market rate every month.
In comparison, the Fair Market Rent (FMR) set by HUD for ZIP 93930 in fiscal year 2024 is $2,410. This figure represents the maximum amount that a housing voucher recipient can be expected to pay towards their rent. However, it is notably higher than the market rate, indicating a potential opportunity for landlords who accept vouchers.
Given that 48.3% of the 17,243 residents are renters, there is a substantial demand for rental properties. Yet, the affordability gap between the median income and both the market rate and FMR suggests that many households struggle to find suitable housing without financial assistance. This creates a competitive environment for landlords, as they must balance the desire for higher rents against the reality of tenant affordability.
For landlords considering whether to accept housing vouchers or focus on cash-paying tenants, the data points to a strategic decision. While cash-paying tenants might offer less paperwork and faster transactions, the higher guaranteed payments from vouchers could provide greater financial stability. Accepting vouchers could also tap into a different segment of the rental market, potentially reducing vacancy rates and increasing occupancy.
Takeaway: Landlords in ZIP 93930 should consider the benefits of accepting housing vouchers, given the high FMR compared to the market rate and median income. This strategy could help mitigate the risk of vacancies and ensure a steady stream of income, even if it means handling additional administrative tasks associated with voucher programs.
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.