Location: Yuba City, CA | Metro: Yuba City, CA MSA
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 | $1,090 |
| 1 Bedroom | $1,290 |
| 2 Bedrooms | $1,510 |
| 3 Bedrooms | $2,090 |
| 4 Bedrooms | $2,520 |
| 5 Bedrooms | $2,923 |
| 6 Bedrooms | $3,274 |
| 7 Bedrooms | $3,536 |
| 8 Bedrooms | $3,713 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,510 | $377,200 | 0.4% | F |
| 3BR | $2,090 | $456,737 | 0.46% | F |
U.S. Census Bureau data (2024)
The analysis for the Section 8 real estate in ZIP code 95962, located in Oregon House, California, reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for ZIP 95962 is set at $1,420 for fiscal year 2024, while the average market rent for a three-bedroom property is $3,250. This discrepancy amounts to a difference of $1,830, representing approximately 129% below the market rate.
In Oregon House, where 22.5% of residents are renters, the median home value stands at $430,123, and the median income is $77,903. Given these figures, landlords and small-portfolio investors must understand the implications of renting properties to voucher tenants at rates significantly lower than the open market. While the FMR is designed to ensure affordability for low-income families, it poses a financial challenge for property owners.
The cost of housing voucher tenants below open-market rates can affect the yield on investment properties. However, the long-term stability and guaranteed rental income through the Section 8 program can be appealing. Despite the lower rent, the consistent payment and reduced vacancy risk can offset the initial yield disadvantage. For landlords, participating in the Section 8 program requires careful consideration of the overall financial impact, including maintenance standards and potential subsidies that might help bridge the gap.
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.