Location: Salinas, CA | Metro: Salinas, CA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $2,430 |
| 1 Bedroom | $2,490 |
| 2 Bedrooms | $3,000 |
| 3 Bedrooms | $4,040 |
| 4 Bedrooms | $4,400 |
| 5 Bedrooms | $5,104 |
| 6 Bedrooms | $5,716 |
| 7 Bedrooms | $6,173 |
| 8 Bedrooms | $6,482 |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP 93944 focuses on the discrepancy between the Fair Market Rent (FMR) and the actual market rent. The FMR for a 2-bedroom unit in ZIP 93944 for fiscal year 2024 is $2,880. However, the market rent is not available, which suggests that landlords may face challenges in pricing their units competitively while still attracting Section 8 tenants.
In the broader context of Monterey County, the FMR for a 2-bedroom unit is $2,982, which is 52.5% higher than the state average of $1,955. This indicates that the area is relatively expensive compared to other parts of California. Despite the high FMR, the lack of market rent data makes it difficult to assess the exact gap between the two figures. Nonetheless, given the high FMR, it's likely that landlords in ZIP 93944 can still achieve a reasonable yield by accepting Section 8 vouchers.
The local rental market in ZIP 93944 is heavily skewed towards renters, with 100.0% of the population renting homes. The absence of median home value and median income data underscores the reliance on rental properties and the importance of Section 8 vouchers in maintaining affordable housing options.
If the market rent were lower than the FMR, it would imply that voucher tenants could cover a larger portion of the rent, making this a yield play for landlords. Conversely, if the market rent is higher, landlords might need to consider the costs associated with housing voucher tenants below open-market rates, which could affect profitability.
To summarize, the high FMR in ZIP 93944, combined with the significant percentage of renters, positions the area as one where Section 8 vouchers can provide a stable income stream for landlords. However, without specific market rent figures, precise calculations of the gap and its implications cannot be made.
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.