Section 8 Fair Market Rent (FMR) for ZIP 95432 - 2027
Location: Mendocino County, CA | Metro: Mendocino County, CA
FY 2027 Fair Market Rent Rates
| Unit Size |
Monthly FMR |
| Studio | $1,260 |
| 1 Bedroom | $1,290 |
| 2 Bedrooms | $1,690 |
| 3 Bedrooms | $2,340 |
| 4 Bedrooms | $2,740 |
| 5 Bedrooms | $3,178 |
| 6 Bedrooms | $3,559 |
| 7 Bedrooms | $3,844 |
| 8 Bedrooms | $4,036 |
Demographics & Housing Statistics
U.S. Census Bureau data (2024)
Median Household Income
$N/A
When considering whether to invest in ZIP code 95432 for Section 8 properties, follow these steps:
Step 1: Can the Fair Market Rent (FMR) of $1,870 cover your debt service?
- No: If the FMR of $1,870 cannot cover the debt service on a property, investing in ZIP 95432 for Section 8 is not advisable. Debt service must be fully covered to ensure financial viability.
- Yes: Proceed to Step 2.
Step 2: How does the market rent compare to the FMR?
- Market Rent Below FMR: The average market rent in ZIP 95432 is $1,625 according to Census ACS data. If this is below the FMR, you can expect Section 8 tenants to pay the difference between the market rent and the FMR, making the property potentially attractive for Section 8 investments.
- Market Rent At or Above FMR: If the market rent is at or above the FMR, then the property would not be eligible for Section 8 without adjustments to the rental price. This scenario makes investment less favorable unless you are willing to reduce the rent to meet the FMR threshold.
Step 3: Is there sufficient demand for rentals?
- It Depends: ZIP 95432 has a rental rate of 44.7%, indicating a significant portion of the population rents their homes. However, the days on market (DOM) is not specified, which is crucial for understanding how quickly units can be leased. If the DOM is low, this suggests strong demand, making the area suitable for Section 8 investments. Conversely, if the DOM is high, it implies weak demand, which could make it difficult to find and retain tenants.
In summary, if the FMR of $1,870 covers your debt service and the market rent is below the FMR, ZIP 95432 presents an opportunity for Section 8 investments. However, the lack of data on DOM means that the final decision will depend on how quickly you can lease out your units. High DOM values would suggest caution, while low DOM values indicate a more favorable market for rentals.
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.