Location: Amador County, CA | Metro: Sacramento--Roseville--Arden-Arcade, CA HUD Metro FMR Area
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 | $1,450 |
| 1 Bedroom | $1,460 |
| 2 Bedrooms | $1,860 |
| 3 Bedrooms | $2,340 |
| 4 Bedrooms | $2,710 |
| 5 Bedrooms | $3,144 |
| 6 Bedrooms | $3,521 |
| 7 Bedrooms | $3,803 |
| 8 Bedrooms | $3,993 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,860 | $376,460 | 0.49% | F |
| 3BR | $2,340 | $458,469 | 0.51% | F |
| 4BR | $2,710 | $546,756 | 0.5% | F |
U.S. Census Bureau data (2024)
If a landlord is considering purchasing a property in ZIP code 95640 (Ione, CA) for Section 8 purposes, they must evaluate several key factors:
1) Does the Fair Market Rent (FMR) of $1,760 cover the debt service on a property valued at $466,532?
Yes. The FMR of $1,760 is the maximum amount that a landlord can charge for a Section 8 rental unit. To determine if this clears the debt service, we need to calculate the monthly mortgage payment. Assuming a 30-year fixed-rate mortgage at an average interest rate of 5%, the monthly mortgage payment would be approximately $2,395. This figure does not include property taxes, insurance, and maintenance costs, which could add another $200-$300 per month. Therefore, the FMR of $1,760 does not fully cover the total debt service, making it challenging to rely solely on Section 8 income for financial stability.
No. As calculated, the FMR of $1,760 is insufficient to cover the monthly debt service of about $2,395, plus additional expenses. Landlords should consider supplementary income sources or properties with lower purchase prices to ensure profitability.
2) Is the market rent of $1,350 (Census ACS) above, at, or below the FMR?
Below. The market rent of $1,350 is significantly below the FMR of $1,760. This indicates that landlords might be able to charge higher rents for non-Section 8 tenants, but it also suggests that the market is not fully utilizing the potential rental value set by the FMR.
3) Are 15.9% of residents renting, combined with the unknown days on market (DOM), enough demand for Section 8 properties?
It depends. With 15.9% of residents renting, there is some demand for rental properties. However, the unknown DOM makes it difficult to assess how quickly properties can be leased. Additionally, the percentage of renters alone does not provide insight into the number of residents who qualify for Section 8 assistance. Landlords should investigate local housing authority waitlists and tenant qualification rates to better understand the supply and demand dynamics for subsidized housing.
In conclusion, while the FMR of $1,760 exceeds the market rent of $1,350, it does not sufficiently cover the debt service on a $466,532 property. Demand exists, but its adequacy for Section 8 properties remains uncertain due to the unknown DOM and lack of data on tenant qualification rates. Landlords should carefully weigh these factors before deciding to invest in ZIP 95640 for Section 8 purposes.
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.