Location: Mendocino 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 | $1,340 |
| 1 Bedroom | $1,420 |
| 2 Bedrooms | $1,860 |
| 3 Bedrooms | $2,580 |
| 4 Bedrooms | $2,880 |
| 5 Bedrooms | $3,341 |
| 6 Bedrooms | $3,742 |
| 7 Bedrooms | $4,041 |
| 8 Bedrooms | $4,243 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,860 | $299,574 | 0.62% | D |
U.S. Census Bureau data (2024)
The ZIP code 95469, encompassing Upper Lake, CA, presents a dynamic rental market with significant implications for both landlords and small-portfolio investors. The Fair Market Rent (FMR) for the area, set at $1,890 for fiscal year 2026, reflects the government's benchmark for affordable housing. In contrast, the actual market rent, according to the Census ACS, stands at $1,421. This discrepancy suggests that while there is a recognized need for affordable housing, the current market conditions do not fully support the higher FMR pricing.
The median home value in Upper Lake, CA, is $419,505, indicating a relatively stable property market. However, the lack of specific data on price-cut shares and days on market (DOM) makes it challenging to definitively state whether supply outpaces demand or vice versa. Nonetheless, the fact that the market rent is lower than the FMR hints at a scenario where landlords might face challenges in achieving higher rents, possibly due to competition or economic factors influencing the willingness of tenants to pay premium rates.
A noteworthy statistic is the 24.5% share of renters in the area. This figure is indicative of a substantial portion of the population who prefer or are required to rent rather than purchase homes. Such a high renter share can be a sign of long-term housing pressure, as it suggests a continuous demand for rental properties. For investors, this means a steady tenant base, but also implies that any changes in the broader economic environment could have a direct impact on rental demand and thus investor returns.
In summary, ZIP 95469 offers a market where rental properties are essential, given the significant number of renters. However, landlords must navigate the gap between government-set FMRs and actual market rents, which may indicate an oversupply or economic constraints affecting pricing. The median home value provides a stable backdrop, but without further time-series data, it is difficult to pinpoint the exact trajectory of the market. Investors should focus on understanding local economic trends and tenant preferences to make informed decisions.
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.