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 | $1,010 |
| 1 Bedroom | $1,070 |
| 2 Bedrooms | $1,400 |
| 3 Bedrooms | $1,950 |
| 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: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,400 | $279,699 | 0.5% | F |
| 3BR | $1,950 | $353,922 | 0.55% | F |
U.S. Census Bureau data (2024)
The Section 8 cap rate picture for ZIP code 95562 (Scotia, CA) can be derived using the Fair Market Rent (FMR) and market rent figures provided. For a 2-bedroom unit, the annualized FMR for fiscal year 2026 is $16,080 ($1,340 x 12 months), while the market rent based on Census ACS data is $12,504 ($1,042 x 12 months).
To calculate the implied gross yield, we divide these annual rents by the median home value of $305,335. The Section 8 FMR scenario yields an implied gross rental yield of approximately 5.27%. This is calculated as follows: $16,080 / $305,335 = 0.0527 or 5.27%. On the other hand, the market rent scenario results in a gross rental yield of about 4.10%, calculated as: $12,504 / $305,335 = 0.0410 or 4.10%.
Given the 42.1% renter density, it's important to consider the realities of the local housing market. While the FMR scenario provides a higher gross rental yield, it's critical to evaluate the likelihood of maintaining occupancy at this level. The N/A-day Days on Market (DOM) indicates that there isn't enough data to determine how quickly homes are rented out, which adds uncertainty to the analysis.
In practice, the market rent scenario is likely more realistic for most landlords and small-portfolio investors. A gross rental yield of 4.10% aligns more closely with typical market conditions and tenant demand. However, for those willing to navigate the complexities of Section 8, the potential for a 5.27% gross rental yield exists. This higher yield must be weighed against the administrative burden and risks associated with participating in the Section 8 program.
Investors should also factor in the 42.1% renter density, which suggests a significant portion of the population is already renting. This could indicate a robust rental market, making the market rent scenario a safer bet for steady cash flow. Nonetheless, the availability of Section 8 vouchers in the area could still make the higher FMR yield achievable for some properties.
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.