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 | $1,450 |
| 1 Bedroom | $1,590 |
| 2 Bedrooms | $2,080 |
| 3 Bedrooms | $2,880 |
| 4 Bedrooms | $3,480 |
| 5 Bedrooms | $4,037 |
| 6 Bedrooms | $4,521 |
| 7 Bedrooms | $4,883 |
| 8 Bedrooms | $5,127 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,590 | $379,563 | 0.42% | F |
| 2BR | $2,080 | $449,851 | 0.46% | F |
| 3BR | $2,880 | $551,267 | 0.52% | F |
| 4BR | $3,480 | $699,708 | 0.5% | F |
| 5BR | $4,037 | $777,191 | 0.52% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP 95949, Grass Valley, CA, does not work favorably for Section 8 participants. The Fair Market Rent (FMR) for the Nevada County, CA metro area in fiscal year 2026 is set at $2,010. However, the current market rent, as indicated by ZORI (Zillow's Observed Rent Index), stands at $2,483. This discrepancy means that landlords participating in the Section 8 program will receive less than what the market demands, potentially leading to financial losses.
Acquisition in this area is moderately affordable. The median home value is $541,713. While this figure might seem high, the days on market (DOM) average at 34 days, suggesting a relatively quick sale process. Additionally, only a 0.1% share of homes have been subject to price cuts, indicating that the housing market is stable and values are holding firm.
Tenant demand is present but limited. With a total population of 20,552, approximately 12.9% of residents are renters. This percentage translates to roughly 2,654 potential tenants, which could be sufficient for small-scale landlords but may not support larger portfolios.
In conclusion, while there is tenant demand in Grass Valley, the rent math does not favor participation in the Section 8 program due to the significant gap between FMR and market rent. Acquisition costs are reasonable, given the stability in home values and the quick turnover rate in sales. Landlords should consider supplementing their income through non-Section 8 rentals or other revenue streams to offset the lower rents received under the program. For small-portfolio investors, the market presents an opportunity but requires careful consideration of the financial implications.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.