Monterey County, CA: Fair Market Rent 2027 and Income Limits

Official HUD figures for landlords and renters, effective October 1, 2026 (rents) and May 1, 2026 (income limits).

$2,4162-bedroom FMR, FY2027

$2,0091-bedroom FMR, FY2027

$125,10080% income limit, family of 4 (FY2026)

$110,500Median family income (FY2026)

The FY2027 Fair Market Rent for a two-bedroom unit in Monterey County is $2,416 a month, down 10.0% from $2,684 in FY2026. Monterey County belongs to the Salinas, CA MSA FMR area, so the same figures apply across that area. FMRs are gross rents: rent plus all tenant-paid utilities except phone, cable and internet.

Fair market rent in Monterey County by bedroom count

Unit size	FY2027 FMR	FY2026 FMR	Change	Payment standard range (90–110%)
Studio	$1,956	$2,173	−10.0%	$1,761 – $2,151
1 bedroom	$2,009	$2,232	−10.0%	$1,809 – $2,209
2 bedrooms	$2,416	$2,684	−10.0%	$2,175 – $2,657
3 bedrooms	$3,261	$3,623	−10.0%	$2,935 – $3,587
4 bedrooms	$3,551	$3,945	−10.0%	$3,196 – $3,906

Source: HUD Fair Market Rents FY2027 (effective October 1, 2026) and FY2026 (revised file), details.

What can a landlord charge a Section 8 tenant here?

The FMR is not a cap on what you can ask on the open market. For a Housing Choice Voucher tenant, the local housing authority sets a payment standard, normally between 90% and 110% of the FMR (or of the ZIP-level Small Area FMR where those apply). For a two-bedroom unit in Monterey County that is typically $2,175 to $2,657 including utilities. You can charge more than the payment standard if the rent passes the housing authority's rent-reasonableness test and, at move-in, the tenant's share stays within 40% of their adjusted monthly income. Ask the housing authority for its current payment standard schedule.

California has a statewide cap on rent increases. 5% plus regional inflation, never more than 10% in 12 months. For increases from Aug 1, 2026: 8.1% to 8.8% depending on the county. Calculate the maximum increase for California →

Can local renters afford the fair market rent?

$73,346median income of renter households

$2,055Median gross rent, all units

34%Rent-to-income ratio (median rent ÷ median renter income)

56%of renter households pay 30% or more of income on rent

At the 30% rule, a renter household earning the local median of $73,346 can afford about $1,834 a month including utilities. The FY2027 two-bedroom Fair Market Rent of $2,416 is $582 (31.8%) more than that. To rent a two-bedroom at the FMR, a household needs $96,640 a year under the 30% rule, or $86,976 under the common landlord rule that income must be three times the rent.

Monterey County, ACS 2020–2024	Estimate ± MOE
Median gross rent (rent + utilities)	$2,055 ±$32
Median income of renter households	$73,346 ±$3,092
Renters paying 30% or more of income (cost-burdened)	55.6% ±2.3
Renters paying 50% or more (severely cost-burdened)	26.3% ±1.6
Renter households (where the share can be computed)	60,610

Change since 2015–2019

	ACS 2015–2019	ACS 2020–2024	Change
Median gross rent	$1,495	$2,055	+37.5%
Median renter household income	$53,753	$73,346	+36.5%
Renters paying 30%+ of income	55.5%	55.6%	+0.1 pts

Rent-to-income calculator: does an applicant qualify? → · Most affordable counties to rent in this state →

Source: U.S. Census Bureau, American Community Survey 5-Year Estimates 2020–2024 and 2015–2019 (tables B25064, B25119, B25070). ± = margin of error at 90% confidence. Dollar figures are not adjusted for inflation.

Small Area FMRs by ZIP code (FY2027)

In metro areas HUD also publishes ZIP-level Small Area Fair Market Rents. Housing authorities in designated areas must use them for voucher payment standards; others may opt in. Here the two-bedroom SAFMR ranges from $2,430 to $3,420 depending on the ZIP code.

All 38 ZIP codes in this FMR area

ZIP	0 BR	1 BR	2 BR	3 BR	4 BR
93210	$1,990	$2,020	$2,620	$3,550	$3,780
93426	$1,970	$2,020	$2,430	$3,270	$3,700
93450	$1,970	$2,020	$2,430	$3,270	$3,560
93451	$1,970	$2,020	$2,590	$3,450	$3,960
93901	$1,970	$2,020	$2,430	$3,270	$3,560
93902	$1,970	$2,050	$2,430	$3,270	$3,560
93905	$1,970	$2,020	$2,430	$3,270	$3,560
93906	$2,030	$2,080	$2,510	$3,380	$3,680
93907	$2,070	$2,150	$2,540	$3,420	$3,730
93908	$2,570	$2,600	$3,160	$4,380	$4,820
93912	$1,970	$2,050	$2,430	$3,270	$3,560
93915	$1,970	$2,050	$2,430	$3,270	$3,560
93920	$1,970	$2,020	$2,430	$3,270	$3,560
93921	$2,770	$2,890	$3,420	$4,490	$4,890
93922	$1,970	$2,050	$2,430	$3,270	$3,560
93923	$2,220	$2,310	$2,740	$3,690	$4,020
93924	$2,160	$2,220	$2,680	$3,600	$3,920
93925	$1,990	$2,020	$2,620	$3,550	$3,780
93926	$1,970	$2,020	$2,430	$3,270	$3,560
93927	$1,970	$2,020	$2,430	$3,270	$3,560
93928	$1,970	$2,020	$2,430	$3,270	$3,560
93930	$1,990	$2,020	$2,620	$3,550	$3,780
93932	$1,970	$2,020	$2,430	$3,270	$3,560
93933	$1,970	$2,020	$2,430	$3,270	$3,560
93940	$2,340	$2,410	$2,890	$3,890	$4,240
93942	$1,970	$2,050	$2,430	$3,270	$3,560
93943	$2,200	$2,360	$2,790	$3,590	$3,820
93944	$2,430	$2,490	$3,000	$4,040	$4,400
93950	$2,600	$2,670	$3,210	$4,320	$4,710
93953	$2,570	$2,600	$3,160	$4,380	$4,820
93954	$1,970	$2,020	$2,430	$3,270	$3,560
93955	$2,070	$2,120	$2,550	$3,440	$3,750
93960	$1,970	$2,020	$2,430	$3,270	$3,560
93962	$2,570	$2,600	$3,160	$4,380	$4,820
95004	$2,420	$2,510	$3,140	$4,220	$4,570
95012	$1,970	$2,020	$2,430	$3,270	$3,560
95039	$1,970	$2,020	$2,430	$3,270	$3,560
95076	$2,510	$2,640	$3,300	$4,280	$4,460

Source: HUD FY2027 Small Area FMRs (effective October 1, 2026).

HUD income limits for Monterey County (FY2026)

Income limits decide who qualifies for Section 8 vouchers, public housing and most HUD-assisted units. The area median family income is $110,500 (FY2025: $104,500, +5.7%). Small figures under each limit show the change from FY2025.

Household size	1 person	2 people	3 people	4 people	5 people	6 people	7 people	8 people
Extremely low income (30%)	$32,850 +8.1%	$37,550 +8.1%	$42,250 +8.1%	$46,900 +8.1%	$50,700 +8.1%	$54,450 +8.1%	$58,200 +8.1%	$61,950 +8.1%
Very low income (50%)	$54,750 +8.2%	$62,600 +8.2%	$70,400 +8.1%	$78,200 +8.2%	$84,500 +8.2%	$90,750 +8.2%	$97,000 +8.2%	$103,250 +8.2%
Low income (80%)	$87,600 +8.1%	$100,100 +8.1%	$112,600 +8.1%	$125,100 +8.1%	$135,150 +8.1%	$145,150 +8.1%	$155,150 +8.1%	$165,150 +8.1%

The 30% limit is HUD's “extremely low income” limit: the higher of 30% of median income or the federal poverty guideline, but never above the 50% limit. That is why it can rise faster than 30% of median for larger households. Tax-credit (LIHTC) properties use separate Multifamily Tax Subsidy Project limits.

Source: HUD Section 8 Income Limits FY2026 (effective May 1, 2026) and FY2025, details.