Location: Humboldt County, CA | Metro: Humboldt 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 | $1,150 |
| 1 Bedroom | $1,220 |
| 2 Bedrooms | $1,590 |
| 3 Bedrooms | $2,200 |
| 4 Bedrooms | $2,660 |
| 5 Bedrooms | $3,086 |
| 6 Bedrooms | $3,456 |
| 7 Bedrooms | $3,732 |
| 8 Bedrooms | $3,919 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,590 | $422,056 | 0.38% | F |
| 3BR | $2,200 | $482,501 | 0.46% | F |
| 4BR | $2,660 | $572,136 | 0.46% | F |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1,620 for ZIP 95521 (Arcata, CA) can sufficiently cover the mortgage payments on a home priced at $488,022. According to the data, while the FMR is a key benchmark for rental prices, it does not directly reflect the affordability of a mortgage payment. To accurately assess this, one must consider the interest rates and terms of the mortgage. However, the FMR does indicate that rental income is likely to be sufficient for covering monthly expenses, including mortgage payments, assuming a reasonable rate.
The investor could also argue that the rental demand, measured at 59.8%, is relatively low and might not ensure a steady stream of tenants. This percentage suggests that just over half of the housing units are rented, which could indeed pose a risk of vacancy. Yet, it's important to note that Arcata, being part of a college town, has a significant portion of students who rely on rentals. Additionally, the local economy supports various industries such as healthcare, government, and retail, contributing to a diverse pool of potential renters.
A final concern might be whether voucher holders can keep up with market rents of around $1,610. The data shows that the FMR is closely aligned with the market rents, indicating that the value of vouchers should generally match the cost of renting. However, the actual amount received from vouchers can vary based on individual qualifications and the specifics of the housing assistance program. It's advisable for landlords to check the current voucher payment standards in Arcata to ensure they align with their property's rental pricing.
In summary, while the FMR of $1,620 provides a solid base for rental pricing, investors must still account for mortgage specifics and the local rental market dynamics. The demand at 59.8% indicates a moderate level of rental activity, which is supported by the student population and local economic factors. Lastly, although the FMR suggests that vouchers will cover the majority of market rents, individual circumstances may affect the exact amount received.
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.