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 | $1,060 |
| 1 Bedroom | $1,070 |
| 2 Bedrooms | $1,400 |
| 3 Bedrooms | $1,940 |
| 4 Bedrooms | $2,340 |
| 5 Bedrooms | $2,714 |
| 6 Bedrooms | $3,040 |
| 7 Bedrooms | $3,283 |
| 8 Bedrooms | $3,447 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,400 | $287,467 | 0.49% | F |
| 3BR | $1,940 | $362,343 | 0.54% | F |
U.S. Census Bureau data (2024)
The ZIP code 95485, located in Nice, CA, presents an interesting balance between yield and stability for real-estate investors. With a Fair Market Rent (FMR) of $1,420 for the fiscal year 2026, compared to the local market rent of $1,039, there is a notable opportunity for higher rental yields. The difference of $381 per month suggests that properties eligible for Section 8 funding could command rents above the market average, enhancing profitability.
The median home value of $320,391 in this area indicates a moderate price point for investment properties. However, the primary driver for yield is the disparity between FMR and market rents, which can be leveraged to secure better returns on investment through government subsidies.
Moving onto stability, the ZIP code shows that 26.2% of residents are renters. This percentage is relatively low, suggesting that there might not be a large pool of tenants naturally present in the area. Additionally, the lack of data on days on market (DOM) implies that there is insufficient information to gauge how quickly properties are rented out, which is a key indicator of stability in the rental market.
The median household income of $104,667 provides a strong economic foundation for the area. This figure suggests that tenants who qualify for Section 8 assistance may have additional income sources, which can contribute to their ability to meet rent obligations, thereby increasing the stability of cash flows.
Based on these figures, ZIP 95485 leans towards being a steady-cashflow zone. While it offers a decent yield due to the gap between FMR and market rents, the stability indicators, particularly the median income, suggest that the risk of default is relatively low. The lower percentage of renters does not necessarily detract from the potential success of Section 8 investments if the properties are marketed effectively to those seeking subsidized housing.
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.