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 | $1,090 |
| 1 Bedroom | $1,150 |
| 2 Bedrooms | $1,510 |
| 3 Bedrooms | $2,090 |
| 4 Bedrooms | $2,520 |
| 5 Bedrooms | $2,923 |
| 6 Bedrooms | $3,274 |
| 7 Bedrooms | $3,536 |
| 8 Bedrooms | $3,713 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,090 | $475,770 | 0.44% | F |
U.S. Census Bureau data (2024)
The ZIP code 95525 is situated in a small, close-knit neighborhood with a total population of 1,441 residents. The area has a significant rental market, with 43.0% of the residents being renters. The median income for households in this ZIP code stands at $57,379, indicating a middle-class community. The median home value is $443,567, reflecting a stable and modest property market.
From an investment perspective, the Federal Market Rent (FMR) for ZIP 95525 in fiscal year 2026 is set at $1,580, which is notably higher than the current market rent of $1,268 as reported by the Census ACS. This discrepancy presents an opportunity for investors to potentially charge rents closer to the FMR level, especially when dealing with Section 8 tenants who have their rent subsidized up to the FMR amount.
The place fits well for both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the subsidy gap between the FMR and market rent means that properties can be rented out to Section 8 tenants without requiring extensive management effort, while still generating above-market returns. On the other hand, for hands-on value-add buyers, the lower market rent suggests potential for renovations and improvements that could justify higher rents closer to the FMR, thereby increasing cash flow and property value over time.
In summary, ZIP 95525 offers a balanced environment for real estate investment, particularly in the context of Section 8 housing. With a substantial rental market and a favorable subsidy structure, it caters to both passive and active investors seeking to capitalize on the housing needs of low-income families in a stable, middle-class community.
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.