Santa Cruz 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).

$4,2542-bedroom FMR, FY2027

$3,3901-bedroom FMR, FY2027

$174,55080% income limit, family of 4 (FY2026)

$137,200Median family income (FY2026)

The FY2027 Fair Market Rent for a two-bedroom unit in Santa Cruz County is $4,254 a month, up 0.9% from $4,214 in FY2026. Santa Cruz County belongs to the Santa Cruz-Watsonville, 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 Santa Cruz County by bedroom count

Unit size	FY2027 FMR	FY2026 FMR	Change	Payment standard range (90–110%)
Studio	$3,230	$3,179	+1.6%	$2,907 – $3,553
1 bedroom	$3,390	$3,298	+2.8%	$3,051 – $3,729
2 bedrooms	$4,254	$4,214	+0.9%	$3,829 – $4,679
3 bedrooms	$5,531	$5,377	+2.9%	$4,978 – $6,084
4 bedrooms	$5,748	$5,659	+1.6%	$5,174 – $6,322

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 Santa Cruz County that is typically $3,829 to $4,679 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?

$80,482median income of renter households

$2,264Median gross rent, all units

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

52%of renter households pay 30% or more of income on rent

At the 30% rule, a renter household earning the local median of $80,482 can afford about $2,012 a month including utilities. The FY2027 two-bedroom Fair Market Rent of $4,254 is $2,242 (111.4%) more than that. To rent a two-bedroom at the FMR, a household needs $170,160 a year under the 30% rule, or $153,144 under the common landlord rule that income must be three times the rent.

Santa Cruz County, ACS 2020–2024	Estimate ± MOE
Median gross rent (rent + utilities)	$2,264 ±$51
Median income of renter households	$80,482 ±$3,959
Renters paying 30% or more of income (cost-burdened)	51.7% ±2.5
Renters paying 50% or more (severely cost-burdened)	28.2% ±2.0
Renter households (where the share can be computed)	36,596

Change since 2015–2019

	ACS 2015–2019	ACS 2020–2024	Change
Median gross rent	$1,717	$2,264	+31.9%
Median renter household income	$52,384	$80,482	+53.6%
Renters paying 30%+ of income	59.1%	51.7%	−7.4 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 $3,300 to $5,260 depending on the ZIP code.

All 23 ZIP codes in this FMR area

ZIP	0 BR	1 BR	2 BR	3 BR	4 BR
94060	$2,870	$3,190	$3,930	$5,140	$5,780
95001	$3,230	$3,390	$4,250	$5,530	$5,740
95003	$3,740	$3,920	$4,920	$6,400	$6,650
95005	$3,380	$3,550	$4,450	$5,790	$6,010
95006	$3,020	$3,170	$3,980	$5,180	$5,380
95007	$2,970	$3,090	$3,940	$5,030	$5,290
95010	$3,400	$3,570	$4,480	$5,830	$6,050
95017	$3,570	$3,750	$4,700	$6,120	$6,360
95018	$3,270	$3,430	$4,310	$5,600	$5,820
95019	$2,870	$2,970	$3,800	$4,840	$5,100
95033	$3,390	$3,650	$4,480	$5,890	$6,180
95041	$3,070	$3,190	$4,070	$5,200	$5,470
95060	$3,990	$4,190	$5,260	$6,840	$7,110
95061	$3,230	$3,390	$4,250	$5,530	$5,740
95062	$3,870	$4,060	$5,100	$6,630	$6,890
95063	$3,230	$3,390	$4,250	$5,530	$5,740
95064	$2,870	$2,970	$3,800	$4,840	$5,100
95065	$3,780	$3,970	$4,980	$6,480	$6,730
95066	$3,410	$3,580	$4,490	$5,840	$6,070
95067	$3,230	$3,390	$4,250	$5,530	$5,740
95073	$3,090	$3,240	$4,070	$5,290	$5,500
95076	$2,510	$2,640	$3,300	$4,280	$4,460
95077	$3,230	$3,390	$4,250	$5,530	$5,740

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

HUD income limits for Santa Cruz County (FY2026)

Income limits decide who qualifies for Section 8 vouchers, public housing and most HUD-assisted units. The area median family income is $137,200 (FY2025: $132,800, +3.3%). 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%)	$45,700 +10.0%	$52,200 +9.9%	$58,750 +9.9%	$65,250 +9.9%	$70,500 +10.0%	$75,700 +9.9%	$80,950 +10.0%	$86,150 +10.0%
Very low income (50%)	$76,150 +10.0%	$87,000 +10.0%	$97,900 +10.0%	$108,750 +10.0%	$117,450 +10.0%	$126,150 +10.0%	$134,850 +9.9%	$143,550 +10.0%
Low income (80%)	$122,200 +10.0%	$139,650 +10.0%	$157,100 +10.0%	$174,550 +10.0%	$188,500 +10.0%	$202,500 +10.0%	$216,450 +10.0%	$230,450 +10.0%

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.