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 | $1,240 |
| 1 Bedroom | $1,250 |
| 2 Bedrooms | $1,640 |
| 3 Bedrooms | $2,270 |
| 4 Bedrooms | $2,740 |
| 5 Bedrooms | $3,178 |
| 6 Bedrooms | $3,559 |
| 7 Bedrooms | $3,844 |
| 8 Bedrooms | $4,036 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,640 | $425,674 | 0.39% | F |
| 3BR | $2,270 | $558,074 | 0.41% | F |
U.S. Census Bureau data (2024)
The Section 8 housing voucher program in ZIP code 95975, centered around Rough and Ready, CA, presents an interesting investment scenario for landlords and small-portfolio investors. The Fair Market Rent (FMR) for the metro area for fiscal year 2026 is set at $1,610. However, the current market rent for the same area is not available, indicating either a lack of recent data or an unusual situation where market rents have not been reported.
In the absence of market rent data, we can infer that the FMR of $1,610 represents a significant portion of the local rental market. Given the low percentage of renters in Rough and Ready at just 9.1%, it's clear that homeownership is the predominant form of housing, with a median home value of $523,958. Despite this, the median household income of $103,216 suggests that many residents might still find renting more affordable, especially if they qualify for Section 8 vouchers.
Section 8 vouchers allow tenants to pay a portion of their income towards rent, with the government covering the rest up to the FMR. In this case, landlords who accept these vouchers can expect to receive a guaranteed $1,610 per month for their units, making it a stable yield play. This is particularly attractive given the limited rental market in Rough and Ready, as it ensures consistent occupancy and a reliable source of income without the risk of market fluctuations.
However, accepting voucher tenants also comes with the cost of potentially renting below the open-market rate. While the exact market rent is unknown, the high median home value and relatively low median income suggest that market rents could be higher than the FMR. Landlords must weigh the benefits of guaranteed income against the potential loss of revenue from renting at a lower rate than what the market might bear.
To conclude, the Section 8 program in ZIP 95975 offers a straightforward investment opportunity for those willing to accept the trade-offs. With a guaranteed FMR of $1,610, landlords can secure steady cash flow, which is crucial in a market with limited rental demand. The decision to participate should be made based on the specific financial goals and risk tolerance of the landlord or investor.
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.