Section 8 Fair Market Rent (FMR) for ZIP 95451 - 2027

Location: Lake County, CA | Metro: Lake County, CA

Investment Score for ZIP 95451

Monthly Rent (2BR)

$1,630

Median Price (2BR)

$314,950

1% Rule

0.52%

Annual Yield

6.21%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,240
1 Bedroom	$1,250
2 Bedrooms	$1,630
3 Bedrooms	$2,260
4 Bedrooms	$2,720
5 Bedrooms	$3,155
6 Bedrooms	$3,534
7 Bedrooms	$3,817
8 Bedrooms	$4,008

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,250	$231,757	0.54%	F
2BR	$1,630	$314,950	0.52%	F
3BR	$2,260	$371,248	0.61%	D
4BR	$2,720	$470,322	0.58%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

12,592

Median Household Income

$62,568

Housing Units

6,401

Renter Percentage

27.1%

Occupancy Rate

79.3%

Renter Occupied

1,375

A landlord considering ZIP 95451 (Kelseyville, CA) for Section 8 investments must follow a structured decision-making process based on the following criteria:

1) Does the Fair Market Rent (FMR) of $1,610 cover the debt service on a property valued at $352,486?

No: The FMR does not sufficiently cover the debt service on a property of that value. Debt service typically includes mortgage payments, property taxes, insurance, and maintenance costs. For a property priced at $352,486, the annual FMR income would be $19,320 ($1,610 per month), which is unlikely to meet the higher debt service requirements.

2) How does the Zillow Rent Index (ZORI) of $2,000 compare to the FMR?

Above FMR: The market rent is higher than the FMR, indicating that landlords might need to subsidize the difference between the market rate and what Section 8 will pay. This could result in lower net returns unless the property can attract non-Section 8 tenants willing to pay the higher market rate.
At FMR: This scenario is unlikely given the provided data, but if the ZORI were closer to the FMR, it would mean the market rent aligns with what Section 8 covers, making it a more straightforward investment decision.
Below FMR: If the market rent were below the FMR, it would be a positive sign for Section 8 properties, as they would generate higher rents than the subsidy, potentially leading to better financial outcomes.

3) Is there sufficient rental demand in Kelseyville, CA, given that 27.1% of residents are renters and the days on market (DOM) is not available?

It Depends: With 27.1% of the population renting, there is a moderate level of rental demand. However, without the DOM data, it's challenging to assess how quickly rental properties are being filled. A high DOM would suggest weak demand, whereas a low DOM would indicate strong demand. Given the limited data, landlords should consider additional factors such as local employment trends, population growth, and the availability of other rental units.

In summary, for ZIP 95451, the FMR of $1,610 does not clear the debt service on a $352,486 property, and the market rent at $2,000 exceeds the FMR. The rental demand appears moderate, but the lack of DOM data makes it difficult to provide a definitive recommendation. Landlords should carefully evaluate their investment goals and consider supplementary research before deciding to invest in this area for Section 8.

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.