Location: Santa Cruz-Watsonville, CA | Metro: Santa Cruz-Watsonville, 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 | $3,400 |
| 1 Bedroom | $3,570 |
| 2 Bedrooms | $4,480 |
| 3 Bedrooms | $5,830 |
| 4 Bedrooms | $6,050 |
| 5 Bedrooms | $7,018 |
| 6 Bedrooms | $7,860 |
| 7 Bedrooms | $8,489 |
| 8 Bedrooms | $8,913 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $3,570 | $743,559 | 0.48% | F |
| 2BR | $4,480 | $857,024 | 0.52% | F |
| 3BR | $5,830 | $1,552,530 | 0.38% | F |
| 4BR | $6,050 | $1,797,436 | 0.34% | F |
U.S. Census Bureau data (2024)
ZIP code 95010, located in Capitola, California, is part of the Santa Cruz-Watsonville, CA MSA. The Fair Market Rent (FMR) for ZIP 95010 in fiscal year 2024 is set at $4,120. This compares to a market rent of $3,227, indicating that the FMR is significantly higher than what the average tenant might be paying.
The median home value in 95010 stands at $1,230,791, which places it on the higher end compared to typical ZIP codes within the Santa Cruz-Watsonville MSA. This suggests that 95010 is a premium sub-market within the larger metro area, characterized by higher property values.
However, the ZIP code has a notable 51.1% renter share, which is higher than many other areas in the same MSA. This high proportion of renters combined with the above-average home values could signal a potential sweet spot for Section 8 properties. Landlords and small-portfolio investors should consider this ZIP code as it offers both a substantial rental market and higher-than-average property values.
To summarize, while 95010 is a premium sub-market due to its elevated home values, the significant renter share and the disparity between FMR and market rent suggest that it can be an attractive location for those interested in Section 8 housing. This combination makes it a unique area within the Santa Cruz-Watsonville MSA, balancing high costs with a strong demand for rentals.
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.