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 | $1,020 |
| 1 Bedroom | $1,080 |
| 2 Bedrooms | $1,410 |
| 3 Bedrooms | $1,950 |
| 4 Bedrooms | $2,360 |
| 5 Bedrooms | $2,738 |
| 6 Bedrooms | $3,067 |
| 7 Bedrooms | $3,312 |
| 8 Bedrooms | $3,478 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,410 | $328,231 | 0.43% | F |
| 3BR | $1,950 | $434,866 | 0.45% | F |
| 4BR | $2,360 | $535,550 | 0.44% | F |
U.S. Census Bureau data (2024)
ZIP code 95540 is located in Fortuna, California, and represents a modest-sized community with a population of 14,469. Approximately 43.6% of the residents are renters, indicating a significant demand for rental properties. The median household income in the area stands at $63,695, which is a reasonable figure for the region. However, the median home value is notably higher at $415,196, suggesting that homeownership is relatively expensive compared to other parts of the state.
The Federal Market Rent (FMR) for ZIP 95540 is set at $1,420 for the fiscal year 2026, reflecting the government's assessment of the fair market rent for the area. In contrast, the actual market rent, according to Census ACS data, is $1,178, revealing a gap between the government's valuation and the real estate market's pricing. This discrepancy presents an opportunity for landlords and small-portfolio investors to leverage the higher FMR rates while maintaining competitive market rents.
Given these economic factors, ZIP 95540 is well-suited for both hands-off voucher operators and hands-on value-add buyers. For those who prefer a passive investment strategy, the difference between the FMR and market rent means that Section 8 vouchers can provide a reliable source of income without the need for extensive property management. On the other hand, active investors looking to improve their properties and increase their rental income can capitalize on the potential for higher rents once renovations are completed. With a mix of renters and homeowners, there is a diverse market for both types of investors.
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.