Location: Humboldt County, CA | Metro: Humboldt County, CA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,120 |
| 1 Bedroom | $1,180 |
| 2 Bedrooms | $1,550 |
| 3 Bedrooms | $2,150 |
| 4 Bedrooms | $2,590 |
| 5 Bedrooms | $3,004 |
| 6 Bedrooms | $3,364 |
| 7 Bedrooms | $3,633 |
| 8 Bedrooms | $3,815 |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 95553 provides insight into the potential investment returns for landlords and small-portfolio investors. The Fair Market Rent (FMR) for a 2-bedroom apartment in this area, as of fiscal year 2026, is set at an annualized rate of $1,370 per month. This figure represents the government-subsidized rental income that can be expected from tenants participating in the Section 8 program.
Against this, the median home value in ZIP 95553 stands at $364,514. To calculate the implied gross yield for a Section 8 property, we use the FMR figure. Multiplying the monthly FMR by 12 gives us an annual rental income of $16,440. Dividing this by the median home value yields an implied gross yield of approximately 4.51%. This calculation assumes that the property is valued at the median home value and that it is rented out as a 2-bedroom unit under the Section 8 program.
The market rent for the area is not available, which complicates the comparison between Section 8 rents and market rates. However, the lack of market rent data does not diminish the importance of understanding the implications of the Section 8 program for rental properties. Given the 15.8% renter density in the area, it's important to note that a significant portion of the population is already renting, which could indicate a competitive market for rental properties.
The Days on Market (DOM) data is also not available, which would typically help in assessing how quickly a property can be leased. Without this information, it's challenging to predict the vacancy rate, which directly impacts the net operating income (NOI) and, consequently, the cap rate. However, the gross yield comparison is still valuable for initial assessment.
In conclusion, based on the available data, the implied gross yield for a 2-bedroom property in ZIP 95553 under the Section 8 program is about 4.51%. While the market rent is not specified, the low gross yield suggests that the Section 8 program may not be the most lucrative option for landlords looking to maximize their returns. Investors should consider the broader context of the local rental market, including the renter density and any trends in rental demand, when deciding whether to participate in the Section 8 program or aim for higher market rents.
Data Sources: FMR data from HUD (2027). 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.