Location: Nevada County, CA | Metro: Nevada County, CA
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 | $1,240 |
| 1 Bedroom | $1,260 |
| 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 |
|---|---|---|---|---|
| 1BR | $1,260 | $323,565 | 0.39% | F |
| 2BR | $1,650 | $406,698 | 0.41% | F |
| 3BR | $2,280 | $527,333 | 0.43% | F |
| 4BR | $2,760 | $638,372 | 0.43% | F |
| 5BR | $3,202 | $724,530 | 0.44% | F |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for the Grass Valley area, which includes ZIP code 95945, is set at $1,610 for the fiscal year 2026. This figure represents the maximum amount that a landlord can charge for rent under the Section 8 program, known officially as the Housing Choice Voucher Program. It's important to note that this is not the actual rent you'll receive; it's the payment standard used by the government to determine the subsidy amount.
In comparison, the local median rent for a two-bedroom apartment in ZIP 95945 is currently $1,765, according to the ZORI (Zillow Observed Rent Index). This indicates that the FMR is slightly below the market rate, meaning that landlords participating in the Section 8 program might have to accept a lower rent than what they could potentially get from private tenants.
The 42.2% renter share statistic suggests that a significant portion of the population in Grass Valley relies on rental housing. This high percentage points to strong demand for rentals, including those covered by Section 8 vouchers. However, the demand doesn't directly translate into higher rents due to the fixed FMR.
If you're considering purchasing a property to use as a Section 8 rental, be aware that the average home price in Grass Valley is around $480,454. This means that acquiring a property suitable for this type of investment will require a substantial upfront cost. The key factor to consider is whether the long-term benefits, such as guaranteed payments through the voucher program, outweigh the initial investment and the potential for slightly lower rents compared to market rates.
Before proceeding with your decision, verify that the property meets all the eligibility criteria for the Section 8 program. These criteria include physical condition standards and rent reasonableness, ensuring that the unit is both safe and priced appropriately relative to other similar units in the area. This verification step is crucial to ensure that your investment aligns with the program requirements and that you can participate without issues.
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.