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 |
|---|---|---|---|---|
| 3BR | $4,380 | $841,550 | 0.52% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP 93962 within the Salinas, CA MSA highlights several critical points for potential investment.
The rent math does not work favorably due to the lack of available market rent data. The Federal Market Rent (FMR) for the zip code in fiscal year 2024 is set at $4320, but without a comparison to the actual market rent, it's challenging to determine if this figure is sustainable. Landlords should seek additional sources to understand the local rental market trends before setting their rents.
Acquisition in this area is moderately affordable, with a median home value of $852,713. However, the absence of specific data on days on market (DOM) and the percentage of homes that have been subject to price cuts complicates a full assessment of the buying climate. Investors should be cautious and conduct thorough research into recent sales and listing durations to gauge the true affordability and liquidity of property acquisitions.
Tenant demand is limited given the small population size of 174 residents, with only 24.2% being renters. This suggests that finding tenants might be difficult, especially considering the low number of potential renters. Landlords will need to ensure they can attract and retain tenants in such a constrained market.
In conclusion, ZIP 93962 presents a mixed picture for real estate investment. While the median home value indicates a reasonable starting point for acquisition, the lack of robust market rent data and the limited tenant pool pose significant challenges. Investors must carefully consider these factors and possibly look into other areas within the Salinas, CA MSA where tenant demand and market rents are more favorable for achieving a successful and profitable rental operation.
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.