Location: Tehama County, CA | Metro: Glenn 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 | $970 |
| 1 Bedroom | $1,070 |
| 2 Bedrooms | $1,400 |
| 3 Bedrooms | $1,920 |
| 4 Bedrooms | $2,310 |
| 5 Bedrooms | $2,680 |
| 6 Bedrooms | $3,002 |
| 7 Bedrooms | $3,242 |
| 8 Bedrooms | $3,404 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,400 | $319,976 | 0.44% | F |
| 3BR | $1,920 | $393,826 | 0.49% | F |
| 4BR | $2,310 | $469,837 | 0.49% | F |
| 5BR | $2,680 | $445,945 | 0.6% | D |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 95963 in Orland, CA, provides a clear picture of potential rental income versus property value. Using the Fair Market Rent (FMR) for a two-bedroom apartment set at $1,440 annually for fiscal year 2026, and the market rent figure of $1,115 from the Census ACS, we can calculate the gross yield for each scenario.
The implied gross-yield based on the FMR would be approximately 3.65%. This calculation comes from dividing the annualized FMR of $1,440 by the median home value of $394,210. On the other hand, using the market rent figure of $1,115, the gross-yield drops to about 2.83%. These yields are derived directly from the provided data points and represent the raw income generated relative to the property's value.
Given the 36.9% renter density in Orland, it's important to consider the local market conditions when determining which scenario is more realistic. The N/A-day Days on Market (DOM) indicates that there might be limited data on how quickly properties are rented out, which could affect vacancy rates and thus the overall yield.
The FMR-based yield of 3.65% assumes that the government subsidy covers the entire rent amount, making it an ideal scenario for landlords participating in the Section 8 program. However, this doesn't account for the realities of operating costs, maintenance, and potential vacancies that could reduce the actual net operating income (NOI).
The market rent-based yield of 2.83%, while lower, reflects the actual rental environment in Orland. It suggests that landlords might need to adjust their expectations regarding rental income, especially if they aim to attract tenants outside the Section 8 program.
In conclusion, while the FMR-based yield offers a higher gross return, the market rent-based yield is likely more reflective of the typical rental situation in Orland, considering the local renter density and the lack of detailed information on how quickly properties are leased. Investors should use these figures as a starting point for their own calculations, factoring in their specific costs and market conditions.
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.