Section 8 Fair Market Rent (FMR) for ZIP 95694 - 2027

Location: Vallejo, CA | Metro: Yolo, CA HUD Metro FMR Area

Investment Score for ZIP 95694

Monthly Rent (2BR)

$1,970

Median Price (2BR)

$532,730

1% Rule

0.37%

Annual Yield

4.44%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,450
1 Bedroom	$1,540
2 Bedrooms	$1,970
3 Bedrooms	$2,630
4 Bedrooms	$2,970
5 Bedrooms	$3,445
6 Bedrooms	$3,858
7 Bedrooms	$4,167
8 Bedrooms	$4,375

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,970	$532,730	0.37%	F
3BR	$2,630	$569,145	0.46%	F
4BR	$2,970	$668,745	0.44%	F
5BR	$3,445	$772,059	0.45%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

10,759

Median Household Income

$109,696

Housing Units

3,703

Renter Percentage

36.1%

Occupancy Rate

94.6%

Renter Occupied

1,264

If a landlord is considering purchasing a property in ZIP code 95694 (Winters, CA) for Section 8 purposes, they should follow this decision tree:

1) Does the Fair Market Rent (FMR) of $1930 cover the debt service on a $615,050 property?

To determine if the FMR of $1930 can cover the debt service on a property valued at $615,050, calculate the monthly mortgage payment based on typical financing terms. Assuming a 30-year fixed-rate mortgage with an interest rate of 4%, the monthly principal and interest payment would be approximately $2,985. The answer is No. The FMR does not cover the debt service on a property of that value.

2) Is the market rent of $2,725 (ZORI) above, at, or below the FMR?

The ZORI (Zillow Observed Rental Index) for ZIP 95694 is $2,725 per month. This is above the FMR of $1930, indicating that the market rent exceeds the maximum allowable rent for Section 8 tenants.

It Depends: Landlords must consider whether they can find a balance between the higher market rents and the lower Section 8 rents. They might also look into mixed-use strategies where some units are rented out at market rates and others at Section 8 rates.

3) Are 36.1% renters + N/A-day days on market (DOM) enough demand?

The percentage of renters in ZIP 95694 is 36.1%. However, the days on market (DOM) data is not available, which means we cannot assess how quickly properties are being rented out. Given the lack of DOM data, the answer is It Depends.

Branching on Demand:

If the DOM is low (e.g., under 30 days): Yes, there is likely sufficient demand to justify a Section 8 investment. Low DOM suggests strong rental activity.
If the DOM is high (e.g., over 60 days): No, there may not be enough demand to support a Section 8 investment. High DOM indicates slower rental activity.
If the DOM is moderate (e.g., between 30-60 days): It Depends. Moderate DOM might still provide reasonable demand, but landlords need to carefully evaluate the local rental market dynamics.

In conclusion, while the market rent in ZIP 95694 is above the FMR, making it potentially attractive for non-Section 8 tenants, the FMR alone does not cover the debt service on a $615,050 property. The demand from renters is present, but without specific DOM data, it's difficult to make a definitive recommendation. Landlords should investigate further to understand the local rental market conditions before deciding to invest in Section 8 properties in Winters, CA.

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.