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 | $1,370 |
| 1 Bedroom | $1,510 |
| 2 Bedrooms | $1,970 |
| 3 Bedrooms | $2,730 |
| 4 Bedrooms | $3,290 |
| 5 Bedrooms | $3,816 |
| 6 Bedrooms | $4,274 |
| 7 Bedrooms | $4,616 |
| 8 Bedrooms | $4,847 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,510 | $354,004 | 0.43% | F |
| 2BR | $1,970 | $455,612 | 0.43% | F |
| 3BR | $2,730 | $605,917 | 0.45% | F |
| 4BR | $3,290 | $757,024 | 0.43% | F |
| 5BR | $3,816 | $853,129 | 0.45% | F |
U.S. Census Bureau data (2024)
The ZIP code 95959 is situated in Nevada City, California, a charming town known for its historic architecture and natural beauty. With a total population of 17,683, it stands out as a community where only 19.5% of residents are renters, indicating a primarily owner-occupied area. The median household income in this region is notably high at $86,524, which reflects a relatively affluent demographic. Correspondingly, the median home value in ZIP 95959 is substantial, reaching $553,066. This combination of a modest rental market and high property values sets the stage for a unique investment opportunity.
From an investment perspective, the Federal Market Rent (FMR) for ZIP 95959 is projected to be $1,920 for the fiscal year 2026, while the current market rent, measured by Zillow's Observed Rent Index (ZORI), is $1,866. This slight premium of the FMR over the ZORI suggests that properties participating in the Section 8 program could command slightly higher rents compared to the market average, providing a potential edge for investors.
Given these economic indicators, ZIP 95959 may not be ideal for hands-off voucher operators who seek areas with a higher concentration of renters. However, for hands-on value-add buyers willing to manage properties actively, there is a compelling case to be made. The high median income and home values indicate a stable and potentially growing market, where well-maintained and strategically positioned rental units can attract tenants willing to pay closer to the FMR rates. This scenario presents opportunities for those who are prepared to invest time and resources into property management and improvements.
In summary, ZIP 95959 offers a niche investment landscape characterized by a low percentage of renters and high property values. While the margin between FMR and ZORI is modest, the overall stability and potential for value appreciation make it suitable for hands-on investors looking to leverage their expertise in property management.
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.