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 | $3,090 |
| 1 Bedroom | $3,240 |
| 2 Bedrooms | $4,070 |
| 3 Bedrooms | $5,290 |
| 4 Bedrooms | $5,500 |
| 5 Bedrooms | $6,380 |
| 6 Bedrooms | $7,146 |
| 7 Bedrooms | $7,718 |
| 8 Bedrooms | $8,104 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $4,070 | $1,066,142 | 0.38% | F |
| 3BR | $5,290 | $1,353,347 | 0.39% | F |
| 4BR | $5,500 | $1,705,597 | 0.32% | F |
| 5BR | $6,380 | $2,137,223 | 0.3% | F |
U.S. Census Bureau data (2024)
The average market rent for typical ZIP codes within the Santa Cruz-Watsonville, CA MSA is around $3,566, which is slightly lower than the market rent of $3,598 for ZIP 95073. This indicates that Soquel is positioned slightly above the average for the MSA in terms of rental prices. The high median home value of $1,347,215 in Soquel further supports its classification as a premium sub-market within the MSA.
ZIP 95073 has a renter share of 26.7%, which is higher than the typical share in the MSA. However, the significant disparity between the median home value and the average home value of other ZIP codes in the MSA suggests that Soquel is not a typical value pocket for Section 8 tenants. Instead, it caters to a wealthier demographic, which could limit the number of potential Section 8 tenants.
In summary, ZIP 95073 in Soquel, CA, represents a premium sub-market within the Santa Cruz-Watsonville MSA. Its higher-than-average market rent and substantially higher median home value make it less suitable for landlords looking to attract Section 8 tenants. Nonetheless, the slightly elevated renter share may still offer opportunities for rental property management in a high-value area.
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.