Location: Calaveras County, CA | Metro: Calaveras 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 | $1,270 |
| 1 Bedroom | $1,340 |
| 2 Bedrooms | $1,750 |
| 3 Bedrooms | $2,420 |
| 4 Bedrooms | $2,540 |
| 5 Bedrooms | $2,946 |
| 6 Bedrooms | $3,300 |
| 7 Bedrooms | $3,564 |
| 8 Bedrooms | $3,742 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,420 | $415,719 | 0.58% | F |
U.S. Census Bureau data (2024)
A skeptical investor considering ZIP 95233 might have several concerns regarding the feasibility of investing in rental properties under the Section 8 program. Here are some common objections and the data that addresses them:
Objection 1: Will Fair Market Rent (FMR) of $1,780 cover the mortgage on a $363,526 home?
The FMR is designed to reflect the average rent levels in a given area, but it does not guarantee coverage of the mortgage on a property valued at $363,526. To determine if the FMR can cover the mortgage, we need to calculate the monthly mortgage payment. Assuming a typical 30-year fixed-rate mortgage with an interest rate of 4%, the monthly principal and interest payment on a $363,526 loan would be approximately $1,740. This means that the FMR of $1,780 could theoretically cover the mortgage, but it leaves little room for other expenses such as property taxes, insurance, maintenance, and management fees. Therefore, the investor should carefully consider these additional costs before making a decision.
Objection 2: Is there enough renter demand at 0.0%?
The 0.0% figure suggests that there is no reported data on the percentage of renters in ZIP 95233 who qualify for Section 8 assistance. This lack of data makes it difficult to assess the demand for subsidized housing in the area. However, it's important to note that even without specific data, there may still be a significant number of potential tenants who are interested in affordable housing options. Landlords should look into local demographics and trends to gauge the overall demand for rental properties in the area.
Objection 3: Will vouchers keep pace with N/A market rents?
The absence of data on how vouchers compare to market rents in ZIP 95233 is a valid concern. Vouchers are intended to help low-income families afford housing, but if the voucher amounts do not increase in line with rising market rents, landlords may find themselves subsidizing the difference. Without specific information on voucher trends in this ZIP code, it's prudent for investors to monitor national and regional adjustments to voucher amounts and correlate them with local rent increases. Additionally, landlords should factor in the possibility of receiving less than the market rent when deciding whether to participate in the Section 8 program.
In conclusion, while the FMR of $1,780 could cover the mortgage on a $363,526 home, the lack of data on renter demand and voucher amounts poses risks. Investors must weigh these factors against the stability and security offered by the Section 8 program before making an investment decision.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.