Location: Mariposa County, CA | Metro: Mariposa 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 | $1,000 |
| 1 Bedroom | $1,080 |
| 2 Bedrooms | $1,370 |
| 3 Bedrooms | $1,880 |
| 4 Bedrooms | $2,200 |
| 5 Bedrooms | $2,552 |
| 6 Bedrooms | $2,858 |
| 7 Bedrooms | $3,087 |
| 8 Bedrooms | $3,241 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,880 | $553,263 | 0.34% | F |
U.S. Census Bureau data (2024)
The ZIP code 95306 presents several challenges for landlords considering Section 8 investments. Tenant turnover is a significant risk due to the discrepancy between the local market rent and the Fair Market Rent (FMR) of $1,400 set for FY 2026 in the metro area. While the exact market rent is not available, it's likely higher than the FMR, which can lead to difficulties in attracting and retaining tenants who might find the rent subsidy insufficient.
Vacancy exposure is another concern. With no data on the average days on market (DOM), it's uncertain how long properties might remain vacant. This uncertainty can translate into financial strain, as vacancies mean lost rental income. Additionally, the typical home value in ZIP 95306 is $479,462, while the median income is $81,302. This disparity suggests that many residents might struggle to afford maintenance costs, potentially leading to deferred maintenance issues that can increase property management expenses and reduce the overall quality of the rental units.
Despite these risks, the ZIP code has a 0.0% renter share, indicating a very high concentration of renters. High renter density typically correlates with greater demand for housing vouchers, which can be advantageous for landlords willing to participate in the Section 8 program. The scarcity of owner-occupied homes means that there is less competition for tenants, and the likelihood of finding voucher holders looking for a place to live is increased.
In summary, while the risks of tenant turnover, vacancy exposure, and deferred maintenance are present, the high density of renters in ZIP 95306 makes it a viable option for landlords prepared to navigate the complexities of the Section 8 program. However, the financial constraints faced by residents may necessitate careful tenant selection and ongoing property management to ensure compliance and minimize maintenance costs.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.