Section 8 Fair Market Rent (FMR) for ZIP 95966 - 2027

Location: Yuba City, CA | Metro: Chico, CA MSA

Investment Score for ZIP 95966

D
Monthly Rent (2BR)
$1,470
Median Price (2BR)
$242,455
1% Rule
0.61%
Annual Yield
7.28%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size Monthly FMR
Studio$1,050
1 Bedroom$1,150
2 Bedrooms$1,470
3 Bedrooms$2,040
4 Bedrooms$2,460
5 Bedrooms$2,854
6 Bedrooms$3,196
7 Bedrooms$3,452
8 Bedrooms$3,625

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms Monthly FMR Median Price 1% Rule Grade
1BR $1,150 $159,322 0.72% D
2BR $1,470 $242,455 0.61% D
3BR $2,040 $329,039 0.62% D
4BR $2,460 $409,472 0.6% D
5BR $2,854 $466,518 0.61% D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
28,503
Median Household Income
$65,586
Housing Units
13,755
Renter Percentage
26.6%
Occupancy Rate
83.4%
Renter Occupied
3,046

The ZIP code 95966, located in Oroville, California, presents a dynamic rental market with specific characteristics that can inform investment strategies. The Fair Market Rent (FMR) for the area is set at $1300 for fiscal year 2024, indicating a benchmark for affordable housing standards. In contrast, the actual market rent, as measured by ZORI, stands at $1,674, suggesting that the rental market is above the government-set fair market rate.

The low price-cut share of 0.2% and a relatively short days on market (DOM) of 37 days point to a market where demand is strong relative to supply. This implies that properties are selling quickly without significant price reductions, which is favorable for landlords and small-portfolio investors looking to capitalize on steady demand.

A median home value of $308,077 further underscores the affordability of the area, making homeownership accessible to many residents. However, with 26.6% of the population being renters, there is an ongoing long-term housing pressure that suggests a persistent need for rental properties. This high renter share could indicate a trend towards continued rental demand, as it reflects a substantial portion of the community that prefers or needs to rent rather than buy.

In summary, the market dynamics in ZIP 95966 suggest a scenario where demand for rentals is robust, and the median home values are within reach for many potential buyers. The rental market is currently outperforming the FMR, signaling a healthy environment for rental investments. The significant renter share points to a sustained need for rental properties, which can be a key consideration for long-term investment planning.

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.