Location: Vallejo, CA | Metro: Vallejo, CA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,870 |
| 1 Bedroom | $2,050 |
| 2 Bedrooms | $2,560 |
| 3 Bedrooms | $3,340 |
| 4 Bedrooms | $3,810 |
| 5 Bedrooms | $4,420 |
| 6 Bedrooms | $4,950 |
| 7 Bedrooms | $5,346 |
| 8 Bedrooms | $5,613 |
U.S. Census Bureau data (2024)
The median home value in ZIP 95625 (Elmira, CA) is $656,600. With an annualized Fair Market Rent (FMR) for a 2-bedroom unit at $1930 (FY 2024), the implied gross yield for a Section 8 property is calculated based on the annual rental income divided by the purchase price. This yields approximately 3.6%.
Market rent for a 2-bedroom unit in ZIP 95625 is typically $1,000+/month, which annualizes to $12,000. Using the median home value of $656,600, the implied gross yield for a market-rate property is roughly 1.8%.
The higher gross yield of 3.6% for Section 8 properties is more realistic given the high renter density of 73.3%. This suggests that a significant portion of the population relies on rental assistance programs, making it likely that Section 8 units can be consistently occupied. Additionally, the shorter days on market (DOM) for Section 8 properties indicates a strong demand, which supports the higher gross yield scenario.
While market-rate rents offer a higher monthly income, the consistency and security of Section 8 rents provide a more stable investment option. Given the data, landlords and small-portfolio investors should consider the Section 8 program as a viable and potentially more profitable avenue for investment in ZIP 95625.
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.