Location: Lake County, CA | Metro: Lake County, CA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,210 |
| 1 Bedroom | $1,210 |
| 2 Bedrooms | $1,580 |
| 3 Bedrooms | $2,190 |
| 4 Bedrooms | $2,640 |
| 5 Bedrooms | $3,062 |
| 6 Bedrooms | $3,429 |
| 7 Bedrooms | $3,703 |
| 8 Bedrooms | $3,888 |
U.S. Census Bureau data (2024)
In evaluating whether to purchase properties in ZIP code 95422 (Clearlake, CA) for Section 8 investments, follow this decision tree:
1) Does FMR $1,460 (metro FY 2026) clear debt service on a $202,416 property?
Yes. The Fair Market Rent (FMR) of $1,460 can cover the debt service on a property priced at $202,416. Assuming a typical mortgage rate and term, the monthly payment would be less than the FMR, making the investment feasible.
No. If the debt service exceeds $1,460 per month, the investment is not viable under Section 8 guidelines. The landlord must either seek lower-priced properties or reconsider the investment in this area.
It depends. This scenario applies if the landlord has alternative financing options or plans to use a combination of Section 8 vouchers and market rents. However, based on the standard criteria, the answer is clear.
2) Is market rent $1,251 (Census ACS) above, at, or below FMR?
Above. If the market rent were above the FMR, it would indicate that Section 8 tenants might struggle to find housing without additional subsidies. However, since the market rent is below the FMR at $1,251, landlords can expect some flexibility in setting rental prices within the voucher limits.
At or Below. Given that the market rent is below the FMR, landlords can set their rents at or slightly above the market rate but still within the voucher limits. This makes Clearlake an attractive option for those looking to balance between market rates and Section 8 guidelines.
3) Are 39.7% renters + N/A-day DOM enough demand?
Yes. With 39.7% of residents being renters, there is sufficient demand for rental properties. While the Days on Market (DOM) is not specified, a high percentage of renters generally indicates strong demand for rental units.
No. If the Days on Market were excessively long, it could suggest a slow-moving market despite the high percentage of renters. However, with the available data showing a significant portion of renters, the market appears to support rental investments.
It depends. This would apply if the Days on Market were unusually high, indicating potential issues with vacancy rates. However, with the current data, the high percentage of renters supports the conclusion that demand is adequate.
If all three conditions are met—debt service is covered by the FMR, market rent is below the FMR, and there is a substantial number of renters—the investment in ZIP 95422 for Section 8 properties is advisable. Landlords should also consider local vacancy rates and the availability of Section 8 vouchers in Clearlake to ensure a steady stream of eligible tenants.
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.