At $2,999/mo, rent takes about 38% of the local median household income, slightly above the 30% benchmark.
Rent by unit size
These are HUD Fair Market Rents, the payment standard for a Housing Choice Voucher (Section 8). They often differ from the $2,999 market median above, and that is expected: FMR is the 40th percentile of standard-quality units and counts gross rent, so it includes essential utilities such as electricity, water, gas, sewer, and trash. The market median is asking rent, which usually excludes utilities. HUD sets FMR once a year; market rent here updates monthly.
Source: HUD Small Area Fair Market Rents. Read the methodology →
12-month history
Last updated: September 25, 2026
What the numbers show
Rent in Morro Bay changed +12.2% over the year to August 2026. Across the 337 California cities Zillow tracks, the typical change was +3.3%.
Rent rose in 10 of the last 12 months.
30% of the median household income ($95,843) is $2,396 a month. That covers HUD's Fair Market Rent for up to a 2-bedroom ($2,380); a 3-bedroom is $3,180.
Atascadero, 7 miles away, rents for 20% less ($2,390/mo), about $7,300 a year in savings.
From Zillow's monthly rent index (ZORI) for Morro Bay. Income is the Census median household income (5-year estimates). Fair Market Rents are HUD’s, which include utilities.
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Who lives here
Morro Bay, CA is majority owner-occupied, has a large retiree population, has a median income above the national average, 48.5% of residents hold a bachelor's degree or higher.
Source: U.S. Census Bureau · ACS 2024 5-Year Estimates
How Morro Bay, CA has changed in 5 years
On the earnings side, the typical household in Morro Bay, CA now reports about $95,843, up from $80,808 in 2021. About 34.6% of households rent today, against 43.1% in 2021. Educational attainment has shifted as well, with the share of adults holding a bachelor's degree or higher climbed from 42.8% to 48.5%.
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Can you afford rent in Morro Bay on your salary?
At $2,999/mo, how Morro Bay rent compares to typical pay (30% rule).
Morro Bay rent by bedroom count
Median rent for each apartment size in Morro Bay. Click any size for full breakdown.
Tips for renters in Morro Bay
Last updated: September 25, 2026
The median rent in Morro Bay is $2,999/mo as of September 2026. A studio apartment averages $1,630/mo while a 2-bedroom runs $2,380/mo. One-bedroom apartments average $1,810/mo and 3-bedroom units go for $3,180/mo.
At 38% of local median household income ($95,843/yr), Morro Bay ranks as moderate compared to the national benchmark of 30%. Rents have increased 12.2% over the past year.
Frequently asked questions
How much income do you need to rent in Morro Bay?
Is rent going up or down in Morro Bay?
How does Morro Bay rent compare to other cities in California?
Which nearby cities are cheaper to rent in than Morro Bay?
At $2,999/mo, rent takes ~38% of Morro Bay's median household income ($95,843/yr). The standard benchmark is 30%.
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Estimated from ZIP-level data
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