Location: Mariposa County, CA | Metro: Mariposa County, CA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,040 |
| 1 Bedroom | $1,150 |
| 2 Bedrooms | $1,490 |
| 3 Bedrooms | $2,060 |
| 4 Bedrooms | $2,200 |
| 5 Bedrooms | $2,552 |
| 6 Bedrooms | $2,858 |
| 7 Bedrooms | $3,087 |
| 8 Bedrooms | $3,241 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 program in ZIP code 95345 reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for the metro area in fiscal year 2026 is set at $1,450. In contrast, recent market rents in nearby areas, such as Merced, CA, range from $2,200 to $2,499 per month. This indicates that the market rent is substantially higher than the FMR.
The difference between the FMR and the market rent can be quantified as follows: the average market rent of $2,350 (calculated from the provided examples) is $900 more than the FMR. This represents a 62.1% increase over the FMR. Landlords who accept Section 8 vouchers will be renting their properties at a rate significantly below the open-market rate, which could impact their profitability.
In ZIP 95345, where 23.5% of residents are renters, the median home value stands at $374,310, and the median income is $68,464. Given these economic conditions, accepting Section 8 tenants could be seen as a risk management strategy. While it ensures steady cash flow, it also means operating at a lower margin compared to the open market. Investors must weigh the benefits of guaranteed rent against the potential loss of yield.
Data Sources: FMR data from HUD (2027). 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.