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 | $2,870 |
| 1 Bedroom | $2,970 |
| 2 Bedrooms | $3,800 |
| 3 Bedrooms | $4,840 |
| 4 Bedrooms | $5,100 |
| 5 Bedrooms | $5,916 |
| 6 Bedrooms | $6,626 |
| 7 Bedrooms | $7,156 |
| 8 Bedrooms | $7,514 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $3,800 | $492,890 | 0.77% | D |
U.S. Census Bureau data (2024)
Santa Cruz, CA's ZIP code 95064 stands out with a population of 10,168 residents, where 65.3% are renters. The median income in this area is $121,042, reflecting a relatively affluent community. Despite this, the median home value is notably high at $694,244, indicating that homeownership is a significant financial commitment.
The voucher economics in ZIP 95064 are particularly favorable for landlords and small-portfolio investors. The Fair Market Rent (FMR) for the fiscal year 2024 is set at $3,520, which is substantially higher than the average market rent of $1,586 according to the Census American Community Survey. This means that landlords who accept Section 8 vouchers can expect to receive significantly higher rents compared to the local market rate, making it an attractive option for those looking to maximize their rental income.
Given the data signature, ZIP 95064 appears to be a stable area with a strong rental market driven by high home values and a substantial portion of residents choosing to rent. The disparity between the FMR and the actual market rent suggests that there is a significant opportunity for landlords to benefit financially from accepting Section 8 vouchers, without the risk of dealing with a volatile or transitional neighborhood.
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.