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 | $1,670 |
| 1 Bedroom | $1,830 |
| 2 Bedrooms | $2,400 |
| 3 Bedrooms | $3,320 |
| 4 Bedrooms | $4,010 |
| 5 Bedrooms | $4,652 |
| 6 Bedrooms | $5,210 |
| 7 Bedrooms | $5,627 |
| 8 Bedrooms | $5,908 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,400 | $411,805 | 0.58% | F |
| 3BR | $3,320 | $511,475 | 0.65% | D |
| 4BR | $4,010 | $662,943 | 0.6% | D |
| 5BR | $4,652 | $773,040 | 0.6% | D |
U.S. Census Bureau data (2024)
In ZIP code 95946, which encompasses Penn Valley, CA in Nevada County, the economics of Section 8 housing can be clearly understood by analyzing the financial mechanisms at play. The SAFMR (Section 8 Area Median Rent) for a two-bedroom apartment in this specific ZIP code for fiscal year 2026 is set at $2,320. This figure represents the maximum amount that the federal government will reimburse landlords participating in the Section 8 Housing Choice Voucher program.
The local market rent, as reported by the Census ACS (American Community Survey), stands at $2,221 for a similar two-bedroom unit. This indicates that the SAFMR is slightly higher than the average market rent, offering landlords a margin above the typical rental rates.
A landlord should understand that the actual reimbursement from a voucher is calculated based on the tenant's portion of the rent and any utility allowances. The tenant's share is generally 30% of their adjusted income, while utility allowances vary but are typically around $100 to $200 per month depending on the region and type of utilities included.
To illustrate, if a tenant's portion is 30% of an income that calculates to $600, and the utility allowance is $150, the total reimbursement from the voucher would be $2,320 minus these amounts. Therefore, the landlord receives $2,320 - $600 - $150 = $1,570 directly from the voucher program.
The SAFMR being set for this specific ZIP code means that it is tailored to the local housing market conditions, rather than applying uniformly across a larger geographic area. This specificity helps ensure that the reimbursement rates reflect the true cost of renting in Penn Valley.
Given the local market rent of $2,221, landlords in ZIP 95946 could expect a slight surplus when renting to a tenant with a Section 8 voucher. The surplus is calculated as the difference between the SAFMR and the market rent, less the tenant's contribution and utility allowance. In this case, the surplus would be $2,320 - $2,221 = $99 before accounting for the tenant's share and utility allowance.
However, since the landlord receives $1,570 from the voucher program and the local market rent is $2,221, there is a gap where the landlord must rely on the tenant's direct payment to cover the remaining amount. The gap is $2,221 - $1,570 = $651. This means landlords receive $651 less than the market rent but still benefit from a stable tenant base due to the government-backed payments.
In summary, landlords in ZIP 95946 can expect a reimbursement of $1,570 for a two-bedroom unit, with a market rent gap of $651, indicating a lower net income compared to market rents but a guaranteed payment structure from the Section 8 program.
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.