Location: Lake County, CA | Metro: Lake 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 | $1,070 |
| 1 Bedroom | $1,070 |
| 2 Bedrooms | $1,400 |
| 3 Bedrooms | $1,940 |
| 4 Bedrooms | $2,350 |
| 5 Bedrooms | $2,726 |
| 6 Bedrooms | $3,053 |
| 7 Bedrooms | $3,297 |
| 8 Bedrooms | $3,462 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,400 | $206,717 | 0.68% | D |
| 3BR | $1,940 | $290,658 | 0.67% | D |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP 95464, which encompasses Upper Lake, CA, and is part of Lake County, revolve around the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment, set at $1,520 per month for fiscal year 2026. This figure is higher than the local market rent, which averages $1,360 according to the Census ACS data. Here’s a breakdown of how this works for landlords.
The SAFMR of $1,520 is the maximum amount that the Housing Choice Voucher program will pay for a two-bedroom rental unit in this specific ZIP code. However, the actual payment made by the program is based on a combination of the voucher holder's contribution and any applicable utility allowances.
The tenant's portion of the rent is typically calculated as 30% of their adjusted monthly income. For instance, if a tenant has an adjusted monthly income of $1,000, they would contribute $300 towards the rent. The remaining amount, up to the SAFMR, is covered by the voucher program. If the total rent required by the landlord is $1,360, the voucher program would cover the difference between the tenant's contribution and the rent, which is $1,060 in this example.
In addition to the base rent, utility allowances can be factored into the reimbursement. These allowances vary but are designed to cover the cost of utilities for the tenant. For ZIP 95464, the utility allowance might be around $300-$400 per month, depending on the specifics of the voucher and the type of utilities used.
This means that the total reimbursement a landlord can expect from the voucher program, including the tenant's contribution and utility allowances, could be close to the SAFMR of $1,520. If the landlord charges $1,360 for rent, the voucher program would cover the entire rent plus utilities, leaving the landlord with a surplus of approximately $160-$260 per month.
To illustrate, let’s consider a scenario where the landlord charges $1,360 for rent and the tenant contributes $300. With a utility allowance of $350, the total reimbursement from the voucher program would be $1,650. Thus, the landlord would receive the full $1,360 for rent plus $350 for utilities, resulting in a surplus of $160 over the SAFMR.
In conclusion, landlords in ZIP 95464 can expect a reimbursement that closely matches the SAFMR of $1,520 when a tenant uses a voucher. Given that the local market rent is lower at $1,360, landlords often find themselves with a surplus of about $160-$260 per month for a two-bedroom unit, making participation in the Section 8 program financially beneficial.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.