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 | $1,200 |
| 1 Bedroom | $1,410 |
| 2 Bedrooms | $1,650 |
| 3 Bedrooms | $2,280 |
| 4 Bedrooms | $2,760 |
| 5 Bedrooms | $3,202 |
| 6 Bedrooms | $3,586 |
| 7 Bedrooms | $3,873 |
| 8 Bedrooms | $4,067 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,650 | $337,084 | 0.49% | F |
| 3BR | $2,280 | $433,272 | 0.53% | F |
| 4BR | $2,760 | $504,815 | 0.55% | F |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1,750 for ZIP 95692 (Wheatland, CA) can adequately cover the mortgage on a home priced at $457,128. According to the data, the median home price in Wheatland is indeed around $457,128, and with typical mortgage rates, a monthly payment on a home of this value could range from $1,800 to over $2,000, depending on down payment and interest rate. This means that the FMR may fall short of covering the mortgage payment, especially if the investor takes out a loan with a higher interest rate or a smaller down payment.
The next concern might be the level of renter demand in Wheatland, given that only 32.7% of households are renters. While this percentage indicates a moderate demand, it is important to note that the rental vacancy rate in Wheatland is relatively low, suggesting that there is a steady demand for rental properties. However, the data does not provide the exact vacancy rate, so we cannot definitively conclude how competitive the rental market is without further information. The moderate rental percentage implies that there is room for growth, but also suggests that competition among landlords could be significant.
A final objection could be whether Housing Choice Vouchers will keep up with the market rents, which are currently at $1,343. The voucher amount in Wheatland is set at $1,750, which is above the current market rent. This indicates that voucher holders should have no difficulty finding affordable housing within their subsidy limits. However, the data does not specify future trends in either market rents or voucher amounts. If market rents increase faster than the voucher amounts, there could be a gap that affects affordability for voucher recipients.
To summarize, while the FMR of $1,750 may not fully cover the mortgage on a $457,128 home, the Housing Choice Voucher program provides a subsidy that exceeds current market rents. The rental demand at 32.7% is moderate and likely stable, but the data does not give a complete picture of the rental market dynamics. Investors should carefully consider these factors before making decisions in Wheatland's real estate market.
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.