Location: Inyo County, CA | Metro: Inyo County, CA
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 | $960 |
| 1 Bedroom | $1,250 |
| 2 Bedrooms | $1,370 |
| 3 Bedrooms | $1,750 |
| 4 Bedrooms | $2,290 |
| 5 Bedrooms | $2,656 |
| 6 Bedrooms | $2,975 |
| 7 Bedrooms | $3,213 |
| 8 Bedrooms | $3,374 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,370 | $289,341 | 0.47% | F |
| 3BR | $1,750 | $350,026 | 0.5% | F |
U.S. Census Bureau data (2024)
A decision tree for whether to invest in ZIP code 93526 (Independence, CA) for Section 8 properties hinges on three key factors: Fair Market Rent (FMR), market rent, and rental demand.
Step 1: Debt Service Coverage Ratio (DSCR)
The Fair Market Rent for the Independence area is $1,360 per month for fiscal year 2026. For a property priced at $321,917, the first question is whether this rent can cover the debt service. Assuming a typical mortgage rate and term, the monthly payment on such a property would be around $1,400-$1,500. Therefore, with an FMR of $1,360, the DSCR would be less than 1, indicating that the rent does not fully cover the debt service. The answer to the first gate is No.
Step 2: Market Rent vs. FMR
If you proceed despite the negative DSCR, the next step is to compare the market rent against the FMR. The market rent in Independence is reported to be $939 per month according to the latest Census ACS data. This is significantly below the FMR of $1,360. Since market rent is below FMR, landlords who aim to attract Section 8 tenants will need to set rents at the lower end of the FMR range to remain competitive. The answer to the second gate is Below FMR.
Step 3: Rental Demand
The third factor is assessing the rental demand. In Independence, 21.1% of the population are renters. However, the Days on Market (DOM) figure is listed as N/A, which suggests there might not be reliable data on how quickly rental units are being filled. Given only the percentage of renters, it's challenging to determine if there is sufficient demand without knowing the DOM. The answer to the third gate is It Depends.
Conclusion:
Based on the analysis, a landlord asking whether they should buy in ZIP 93526 for Section 8 properties would receive a No recommendation due to the FMR not covering the debt service. However, if they decide to proceed, they must acknowledge that market rents are below the FMR, requiring them to adjust their expectations accordingly. The lack of clear DOM data means that while there is a known percentage of renters, the actual demand cannot be precisely quantified, leading to an It Depends outcome on whether there is enough demand to justify investment.
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.