Location: Yolo, CA | Metro: Yolo, 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 | $1,900 |
| 3 Bedrooms | $2,630 |
| 4 Bedrooms | $2,870 |
| 5 Bedrooms | $3,329 |
| 6 Bedrooms | $3,728 |
| 7 Bedrooms | $4,026 |
| 8 Bedrooms | $4,227 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,630 | $390,843 | 0.67% | D |
U.S. Census Bureau data (2024)
The analysis of the Section 8 cap-rate scenario for ZIP code 95653 provides insight into potential investment returns for landlords and small-portfolio investors. The Fair Market Rent (FMR) for a two-bedroom apartment in ZIP 95653 for FY 2024 is set at an annualized rate of $1770. Given the median home value in this area stands at $372,562, the implied gross yield from the FMR perspective can be calculated.
To derive the gross yield, we divide the annual rental income by the property's value. In this case, the gross yield from the Section 8 FMR would be approximately 0.47%. This calculation is derived from $1770 divided by $372,562. However, it's important to note that this figure does not consider the expenses associated with maintaining the property, nor does it reflect the actual market conditions beyond the FMR.
The market rent for ZIP 95653 is currently listed as N/A, which suggests a lack of available data to accurately calculate a gross yield based on market rates. Without a specific market rent figure, it's challenging to provide a direct comparison between the Section 8 FMR and market yields. Nonetheless, given the 6.4% renter density in the area, it's reasonable to infer that the demand for rentals is relatively low, which might affect the likelihood of achieving higher market rents.
The days on market (DOM) being listed as N/A further complicates the assessment of how quickly properties are typically rented out, which is crucial for understanding cash flow dynamics. However, considering the lower renter density, it is likely that achieving market rents above the FMR could be difficult without offering significant incentives or improvements to the property.
In conclusion, while the Section 8 FMR provides a stable but modest gross yield of 0.47%, the absence of market rent data makes it impossible to definitively state whether the market yield would be higher. Given the lower renter density, the FMR-based yield is more realistic until specific market rent figures become available. Investors should proceed with caution and carefully evaluate the local rental market trends before making investment decisions.
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.