Section 8 Fair Market Rent (FMR) for ZIP 95063 - 2027

FY 2027 Fair Market Rent Rates

The Section 8 housing market in ZIP code 95063, part of the Santa Cruz-Watsonville County, Santa Cruz-Watsonville, CA MSA metro area, presents a unique opportunity for real estate investors. The HUD Fair Market Rent (FMR) for this region in fiscal year 2024 is set at $4050. However, the lack of available market rent data makes it challenging to directly compare the FMR to current rental prices. Based on the HUD FMR alone, landlords can expect that voucher tenants will generally cashflow at this rate, but the exact margin depends on individual property costs and expenses.

To provide further context, the median home value in ZIP 95063 is not specified, which means we cannot accurately calculate the rent-to-price ratio. This ratio is typically used to assess whether renting or buying is more financially advantageous for residents, and without specific figures, we must rely on other indicators to understand the local market dynamics.

The absence of data regarding the median days on market (DOM) and the percentage of price cuts suggests that the market is relatively stable, with properties selling at or near their asking prices. This stability can be beneficial for investors, as it indicates that there is less pressure to lower rents to attract tenants or sell homes quickly.

In conclusion, while the specific market rent figures are not available, the HUD FMR of $4050 provides a solid benchmark for cashflow expectations. Given the stable nature of the market, the strongest angle for investors in ZIP 95063 would be stability, ensuring consistent returns over time without the volatility seen in more dynamic markets.

Data Sources: FMR data from HUD (2027).

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.