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 | $1,610 |
| 1 Bedroom | $1,620 |
| 2 Bedrooms | $2,070 |
| 3 Bedrooms | $2,870 |
| 4 Bedrooms | $3,000 |
| 5 Bedrooms | $3,480 |
| 6 Bedrooms | $3,898 |
| 7 Bedrooms | $4,210 |
| 8 Bedrooms | $4,421 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,070 | $434,210 | 0.48% | F |
| 3BR | $2,870 | $532,041 | 0.54% | F |
| 4BR | $3,000 | $650,588 | 0.46% | F |
| 5BR | $3,480 | $721,907 | 0.48% | F |
U.S. Census Bureau data (2024)
To determine if you should buy in ZIP code 95776 (Woodland, CA) for a Section 8 portfolio, follow this decision tree:
1) Does the Fair Market Rent (FMR) of $1,910 cover the debt service on a $601,657 property?
Yes: The FMR of $1,910 is sufficient to cover the debt service on a property priced at $601,657. This means that rental income from Section 8 tenants will meet the financial obligations associated with owning the property.
No: The FMR of $1,910 does not cover the debt service on a $601,657 property. This makes it financially unfeasible to acquire the property solely for Section 8 tenants without additional sources of income.
2) Is the market rent ($2,940 ZORI) above, at, or below the FMR?
Above: The ZORI (median rent) of $2,940 exceeds the FMR of $1,910. This indicates that there is a premium for market rents over what Section 8 covers. Landlords can potentially supplement their income with non-Section 8 tenants paying higher rents.
At: The ZORI of $2,940 equals the FMR of $1,910. This scenario is unlikely given the provided numbers, but if true, it would mean market rents match the government's fair market assessment. Landlords should rely on Section 8 payments alone, which may be tight given the property price.
Below: The ZORI of $2,940 is below the FMR of $1,910, which again is unlikely based on the provided data. If true, it would indicate that market rents are lower than what the government deems fair, making Section 8 properties less attractive compared to market-rate rentals.
3) Are 31.9% renters combined with a 9-day Days on Market (DOM) enough demand?
Yes: With 31.9% of residents being renters and a relatively quick turnover time of 9 days on market, there is a strong indication of demand for rental properties in Woodland, CA. This bodes well for both Section 8 and market-rate rentals.
No: If the percentage of renters or the DOM were significantly lower, it might suggest insufficient demand. However, given the provided figures, this branch is unlikely to apply.
It Depends: For a more nuanced analysis, consider the mix between Section 8 and market-rate tenants. Given the ZORI is above the FMR, a landlord could balance their portfolio with a mix of both types of tenants to ensure steady cash flow.
In conclusion, for a property priced at $601,657, the FMR of $1,910 must first be evaluated against the debt service costs. If it covers those costs, the next step is to assess the relationship between ZORI and FMR. A ZORI above the FMR suggests potential for higher market-rate rents. Finally, the combination of a 31.9% rental rate and a 9-day DOM indicates healthy demand. These factors together provide a clear path for decision-making regarding investment in Woodland, 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.