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 | $2,570 |
| 1 Bedroom | $2,600 |
| 2 Bedrooms | $3,160 |
| 3 Bedrooms | $4,380 |
| 4 Bedrooms | $4,820 |
| 5 Bedrooms | $5,591 |
| 6 Bedrooms | $6,262 |
| 7 Bedrooms | $6,763 |
| 8 Bedrooms | $7,101 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $3,160 | $1,465,927 | 0.22% | F |
| 3BR | $4,380 | $2,445,408 | 0.18% | F |
| 4BR | $4,820 | $3,773,245 | 0.13% | F |
| 5BR | $5,591 | $8,623,728 | 0.06% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 93953, which encompasses Del Monte Forest, CA, in Monterey County, are defined by the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment at $4,320 per year, or approximately $360 per month for fiscal year 2024. This SAFMR figure is specifically set for this ZIP code, reflecting the local rental market conditions more accurately than a broader metro or county-level rate would.
In contrast, the local market rent for a similar unit, as indicated by ZORI (Zillow Observed Rent Index), stands at $6,750 annually, or roughly $562.50 monthly. This highlights a significant disparity between the market rent and the SAFMR rate.
When a tenant uses a Section 8 voucher, the payment structure is straightforward. The Housing Authority covers the difference between the tenant's portion and the SAFMR rate. For a two-bedroom unit, the tenant typically contributes 30% of their adjusted income toward rent. If we assume an average adjusted income of $1,800 per month for a qualifying household, the tenant would contribute about $540 monthly. However, since the SAFMR rate is lower at $360, the actual contribution from the tenant would be capped at $360, and the Housing Authority would cover the remainder of the SAFMR rate, which is also $360.
Utility allowances are separate and do not factor into the rent calculation directly. They are designed to help cover the cost of utilities and are paid directly to the tenant. In ZIP 93953, the utility allowance is not specified but typically ranges from $200 to $300 per month depending on the region and type of unit.
This means that for a landlord in ZIP 93953, the total reimbursement for a two-bedroom apartment would be $720 per month ($360 from the Housing Authority plus the $360 tenant contribution). Given that the local market rent is around $562.50, the voucher reimbursement exceeds the market rent by $157.50 per month, creating a surplus for the landlord.
To summarize, the typical reimbursement gap or surplus for a two-bedroom unit in ZIP 93953 under the Section 8 program is a surplus of $157.50 per month. This makes participating in the Section 8 program financially beneficial for landlords in this area, as they receive more than the local market rent for a two-bedroom apartment.
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.