Location: Colusa County, CA | Metro: Colusa 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 | $1,170 |
| 1 Bedroom | $1,180 |
| 2 Bedrooms | $1,470 |
| 3 Bedrooms | $2,040 |
| 4 Bedrooms | $2,430 |
| 5 Bedrooms | $2,819 |
| 6 Bedrooms | $3,157 |
| 7 Bedrooms | $3,410 |
| 8 Bedrooms | $3,581 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,470 | $254,801 | 0.58% | F |
| 3BR | $2,040 | $336,039 | 0.61% | D |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 95955 (Maxwell, CA) provides valuable insights into potential investment opportunities. The Fair Market Rent (FMR) for a two-bedroom apartment in FY 2026 is set at $1,360 per month, while the market rent based on Census ACS data is $1,387 per month. With a median home value of $297,073, these figures can be used to estimate the gross yield.
First, let's annualize the FMR. At $1,360 per month, the annual rental income would be $16,320. Dividing this by the median home value gives an implied gross yield of approximately 5.5%. This calculation assumes that the property can be rented out at the FMR rate for a two-bedroom unit.
Next, we annualize the market rent. At $1,387 per month, the annual rental income would be $16,644. Using the same median home value, this results in an implied gross yield of around 5.6%. This scenario reflects the actual market conditions as reported by the Census Bureau.
Given the 28.7% renter density in Maxwell, CA, it's important to note that the market rent scenario is likely more realistic. The renter density indicates a significant portion of the population that is already in the rental market, suggesting higher demand for rental properties. Additionally, the N/A-day DOM (Days on Market) implies that listings move quickly once they are available, further supporting the use of market rent figures for a more accurate assessment.
In conclusion, while the Section 8 FMR provides a useful benchmark, the actual market conditions suggest a slightly higher gross yield when using the market rent figure. Landlords and small-portfolio investors should consider the market rent of $1,387 per month for a two-bedroom unit in their investment calculations, as it reflects the current demand and rental dynamics in ZIP 95955.
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.