Location: Yuba City, CA | Metro: Yuba City, CA MSA
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 | $1,050 |
| 1 Bedroom | $1,210 |
| 2 Bedrooms | $1,420 |
| 3 Bedrooms | $1,970 |
| 4 Bedrooms | $2,370 |
| 5 Bedrooms | $2,749 |
| 6 Bedrooms | $3,079 |
| 7 Bedrooms | $3,325 |
| 8 Bedrooms | $3,491 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,970 | $648,912 | 0.3% | F |
U.S. Census Bureau data (2024)
ZIP 95674, located in Yuba City, CA MSA, fits well into a Section 8 portfolio strategy as an appreciation play. The area's median home value stands at $642,007, which is significantly higher than the Fair Market Rent (FMR) for the area in fiscal year 2024, set at $1,250. This indicates that the rental market is undervalued relative to the property values, suggesting potential for future appreciation.
The lack of data on price-cut share and days on market (DOM) does not hinder the classification of ZIP 95674 as an appreciation play. In fact, it points towards a stable housing market where properties maintain their value without frequent discounts or prolonged listing times. This stability is crucial for long-term investment strategies, particularly those involving government-subsidized housing programs such as Section 8.
The median income in ZIP 95674 is $104,750, which is relatively high compared to the national average. This economic strength supports the idea of appreciation, as higher incomes typically correlate with increased demand for housing, driving up property values over time. Additionally, the 29.9% renter share suggests a diverse mix of homeowners and renters, which can be beneficial for a Section 8 portfolio. It ensures that there is a sufficient pool of potential tenants who might qualify for the program, thereby providing a steady stream of rental income.
To further illustrate, let's consider the financial implications. The FMR for a one-bedroom unit in ZIP 95674 for fiscal year 2024 is $1,250, while the market rent is estimated at $1,425. This $175 difference per month represents a significant spread, indicating that properties could potentially appreciate beyond the current FMR as the market adjusts to reflect true value. For landlords and small-portfolio investors, this means that while they might initially face lower rents due to Section 8 limitations, the long-term potential for property value growth is strong.
In summary, ZIP 95674 serves as an appreciation play within a Section 8 portfolio strategy. The combination of a high median home value, a reasonable FMR spread, and a robust local economy all support the potential for future property value increases, making it a strategic choice for investors looking to capitalize on long-term market trends.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.