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 | $980 |
| 1 Bedroom | $1,060 |
| 2 Bedrooms | $1,390 |
| 3 Bedrooms | $1,940 |
| 4 Bedrooms | $2,090 |
| 5 Bedrooms | $2,424 |
| 6 Bedrooms | $2,715 |
| 7 Bedrooms | $2,932 |
| 8 Bedrooms | $3,079 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,390 | $306,489 | 0.45% | F |
| 3BR | $1,940 | $409,929 | 0.47% | F |
U.S. Census Bureau data (2024)
The Section 8 market in ZIP code 95246, which encompasses Mountain Ranch, CA, in Calaveras County, presents a clear opportunity for investors looking to secure steady cash flow. The HUD Fair Market Rent (FMR) for the area, set at $1,540 for FY 2026, significantly exceeds the current market rent of $1,297, as reported by the Census ACS. This means that voucher tenants will generally provide positive cash flow to landlords, even when considering standard operating expenses.
To further analyze the investment potential, the median home value in ZIP 95246 stands at $338,690. Given the FMR of $1,540, the rent-to-price ratio can be calculated as approximately 0.51%, indicating a relatively low rental yield compared to the property value. However, this ratio does not fully capture the financial benefit of having a stable tenant with a government-backed voucher.
Note that the median days on market (DOM) and the percentage of homes that have experienced price cuts are not available. These metrics typically help gauge the health of the real estate market and the competitiveness between buying and renting. In this case, the absence of these figures does not detract from the strong cash flow potential offered by the Section 8 program in the area.
The strongest angle for investors in ZIP 95246 is undoubtedly cash flow. With voucher tenants paying above the market rate, landlords can expect consistent income without the typical fluctuations seen in non-subsidized rentals. This makes the area particularly attractive for those focused on generating reliable monthly returns rather than rapid appreciation or long-term stability.
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.