Location: San Benito County, CA | Metro: San Benito County, CA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,990 |
| 1 Bedroom | $2,000 |
| 2 Bedrooms | $2,620 |
| 3 Bedrooms | $3,550 |
| 4 Bedrooms | $3,780 |
| 5 Bedrooms | $4,385 |
| 6 Bedrooms | $4,911 |
| 7 Bedrooms | $5,304 |
| 8 Bedrooms | $5,569 |
U.S. Census Bureau data (2024)
The potential pitfalls for landlords investing in ZIP 95043 through Section 8 are significant and must be carefully considered. First, tenant turnover poses a notable challenge. The market rent for the area is $1,271, while the Fair Market Rent (FMR) for FY 2024 is set at $1,960. This discrepancy indicates that landlords may face frequent changes in occupancy, which can disrupt cash flow and necessitate ongoing marketing efforts to attract tenants.
Vacancy exposure is another critical risk factor. With the days on market (DOM) being listed as N/A, it's unclear how quickly properties might fill when vacant. However, given the higher FMR compared to market rent, there is a possibility that landlords could experience extended periods of vacancy if voucher holders are scarce. This would mean relying on non-voucher tenants who may not be willing to pay the higher rates set by Section 8.
The deferred maintenance exposure is also a concern. While the typical home value is not available, the median income in ZIP 95043 stands at $150,441. This suggests that residents have the financial capacity to maintain their homes, but it does not guarantee that voucher recipients will do the same. Landlords should prepare for potential maintenance issues that may arise from tenants who lack the resources or inclination to keep properties in optimal condition.
On the other hand, these risks are somewhat mitigated by the high renter share of 34.9%. High renter density generally translates into a robust demand for rental housing, including those units covered by Section 8 vouchers. This demand can help stabilize occupancy rates and provide a steady stream of qualified tenants.
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.