Location: Salinas, CA | Metro: Salinas, CA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,970 |
| 1 Bedroom | $2,020 |
| 2 Bedrooms | $2,430 |
| 3 Bedrooms | $3,270 |
| 4 Bedrooms | $3,560 |
| 5 Bedrooms | $4,130 |
| 6 Bedrooms | $4,626 |
| 7 Bedrooms | $4,996 |
| 8 Bedrooms | $5,246 |
U.S. Census Bureau data (2024)
The ZIP code 93932 presents several challenges for landlords considering Section 8 investments. Tenant turnover is a significant concern due to the disparity between the market rent and the Fair Market Rent (FMR) set at $2410 for FY 2024. This discrepancy can lead to higher churn rates as tenants might seek more affordable housing options. Additionally, the vacancy exposure is notable, given that the days on market (DOM) data is currently unavailable, which suggests potential difficulties in filling vacancies quickly. The typical home value in the area stands at $836,549, while the median income is significantly lower at $134,342. This income-home value gap implies a higher risk of deferred maintenance, as tenants may lack the financial resources to keep properties in optimal condition.
Despite these risks, there are factors that mitigate them. The renter share in ZIP 93932 is 14.6%, indicating a relatively high concentration of renters. High renter density often correlates with greater demand for rental assistance vouchers, which can help stabilize occupancy rates. Furthermore, the presence of a substantial number of renters may also mean a larger pool of potential voucher holders, reducing the risk of extended vacancies.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.