Location: Calaveras County, CA | Metro: Alpine 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 | $1,100 |
| 1 Bedroom | $1,170 |
| 2 Bedrooms | $1,530 |
| 3 Bedrooms | $2,120 |
| 4 Bedrooms | $2,280 |
| 5 Bedrooms | $2,645 |
| 6 Bedrooms | $2,962 |
| 7 Bedrooms | $3,199 |
| 8 Bedrooms | $3,359 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,170 | $212,293 | 0.55% | F |
| 2BR | $1,530 | $346,045 | 0.44% | F |
| 3BR | $2,120 | $467,839 | 0.45% | F |
| 4BR | $2,280 | $546,144 | 0.42% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 95223, located in Avery, California, within Calaveras County, are straightforward. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code for fiscal year 2026 is set at $1,540. This figure represents the maximum amount that the Section 8 program will pay toward the rent of a two-bedroom unit in this area.
The local market rent for a two-bedroom apartment, according to the Census ACS, is $1,542. This indicates that the market rent is slightly higher than the SAFMR, creating a very narrow margin for landlords who participate in the Section 8 program.
A Section 8 voucher works by covering the difference between the market rent and what the tenant can afford. The tenant's portion is typically 30% of their adjusted income. For example, if a tenant's monthly adjusted income is $1,500, they would be responsible for paying $450 toward the rent. The remaining balance, up to the SAFMR limit, is covered by the government.
In addition to the base rent, the voucher also includes an allowance for utilities. This allowance varies but is designed to cover reasonable costs for electricity, water, gas, and other essential services. The utility allowance is not part of the SAFMR but is calculated separately and added to the total reimbursement amount.
Let's walk through a practical scenario. If the market rent for a two-bedroom apartment is $1,542 and the SAFMR is $1,540, the government will reimburse up to $1,540. Assuming the tenant pays $450, the government will cover the rest, which is $1,090. If there's a utility allowance of $200, the total reimbursement to the landlord would be $1,290.
This leaves a gap of $252 ($1,542 - $1,290) that the landlord does not receive. However, because the market rent is so close to the SAFMR, the gap is minimal. In some cases where the market rent is lower, the landlord might even see a slight surplus when utility allowances are included.
In ZIP 95223, landlords participating in the Section 8 program should expect a reimbursement that closely matches the market rent, resulting in a typical reimbursement gap of just $2 per month for a two-bedroom unit. This makes Section 8 a viable option for landlords in this area, especially given the stability and security that comes with having the government as a guarantor of timely rent payments.
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.