Santa Cruz-Watsonville, CA
The Fair Market Rent for a 2-bedroom in Santa Cruz-Watsonville, CA is $4,214 per month, ranking #1 out of 693 areas nationwide. The area median household income is $109,266, meaning a household spending Fair Market Rent on a 2-bedroom would pay 46.3% of income on housing. Rent in Santa Cruz-Watsonville has increased 3.9% year over year. The area has a population of 266K, with 40% of households renting.
Fair Market Rent by Bedroom Size
Fair Market Rents (FMRs) are set annually by the U.S. Department of Housing and Urban Development and represent the 40th percentile of gross rents for standard-quality units in an area. FMRs are used to determine payment standards for the Housing Choice Voucher program and other federal housing assistance.
Housing Affordability
In Santa Cruz-Watsonville, CA, a household earning the area median income of $109,266 would spend 46.3% of their gross income on a 2-bedroom at Fair Market Rent. HUD considers households spending more than 30% of income on housing to be "cost-burdened." This means many renters in this area face financial strain from housing costs.
5-Year Rent Trend
+39.5% since 20212-bedroom Fair Market Rent by fiscal year. Source: HUD FMR API.
Minimum Wage Affordability
The minimum wage in California is $16.50/hr. A minimum-wage worker would need to work 196.5 hours per week to afford a 2-bedroom at Fair Market Rent without exceeding 30% of income on housing. This means a single minimum-wage earner cannot afford a 2-bedroom working a standard 40-hour week. The poverty rate in Santa Cruz-Watsonville is 11.2%, below the national average of approximately 12.4%.
Housing Market Context
The median home value in Santa Cruz-Watsonville is $1,015,200. At a median income of $109,266, this represents a price-to-income ratio of 9.3x. 9.2% of housing units in the area are vacant, which is near the national average.
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Frequently Asked Questions
The HUD Fair Market Rent for a 2-bedroom in Santa Cruz-Watsonville, CA is $4,214 per month. A studio is $3,179/mo, a 1-bedroom is $3,298/mo, and a 3-bedroom is $5,377/mo. The actual median gross rent from Census data is $2,172/mo.
Santa Cruz-Watsonville has a rent burden of 46.3%, meaning a household earning the median income of $109,266 would spend 46.3% of income on a 2-bedroom at Fair Market Rent. HUD considers spending 30%+ on housing to be cost-burdened. To afford a 2-bedroom without being cost-burdened, a household would need an annual income of at least $168,560.
Santa Cruz-Watsonville's 2-bedroom Fair Market Rent of $4,214/mo is $2,964 above the national median of $1,250/mo. Santa Cruz-Watsonville ranks #1 out of 693 areas for highest rent in the United States.
To afford a 2-bedroom at Fair Market Rent in Santa Cruz-Watsonville without spending more than 30% of income on housing, you would need an annual household income of at least $168,560, or a full-time hourly wage of $81/hour. The area median income is $109,266.
The 2-bedroom Fair Market Rent in Santa Cruz-Watsonville increased by 3.9% compared to the prior year. This is a modest increase, roughly in line with typical housing cost trends.
Fair Market Rents represent the 40th percentile of gross rents for standard-quality rental units. Rent burden is calculated as annual 2BR FMR divided by area median household income. Census data (income, home value, population, vacancy) is from the ACS 5-Year estimates. Unemployment rates are from BLS Local Area Unemployment Statistics.