Location: Nevada County, 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 | $1,440 |
| 1 Bedroom | $1,620 |
| 2 Bedrooms | $2,040 |
| 3 Bedrooms | $2,820 |
| 4 Bedrooms | $3,400 |
| 5 Bedrooms | $3,944 |
| 6 Bedrooms | $4,417 |
| 7 Bedrooms | $4,770 |
| 8 Bedrooms | $5,009 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,040 | $412,393 | 0.49% | F |
| 3BR | $2,820 | $483,811 | 0.58% | F |
U.S. Census Bureau data (2024)
The Section 8 cap rate scenario for ZIP 95977, Smartsville, CA, can be analyzed based on the Fair Market Rent (FMR) and median home values available. For a two-bedroom rental unit, the annualized FMR for FY 2024 is $2000 per month, equating to an annual rent of $24,000. The median home value in the area is $453,413.
To calculate the implied gross yield using the FMR, divide the annual rent by the median home value:
\[ \text{Gross Yield} = \frac{\$24,000}{\$453,413} \approx 5.29\% \]
This suggests that if a landlord were to convert a property valued at the median into a two-bedroom rental unit participating in the Section 8 program, the gross yield would be approximately 5.29%. However, this calculation assumes the property can be rented at the FMR, which might not reflect the actual market conditions.
Given the market rent is listed as N/A, it's unclear what the typical market rent would be for a similar two-bedroom property in Smartsville. This lack of information makes it difficult to provide a direct comparison between the Section 8 FMR and the market rent. Nevertheless, we can still infer that the gross yield derived from the FMR is a conservative estimate.
The 3.9% renter density in Smartsville indicates a relatively low proportion of residents who are renters compared to homeowners. This figure implies that there is less demand for rentals overall, which could affect the competitiveness of Section 8 properties versus market-rate rentals. Additionally, the N/A-day Days on Market (DOM) suggests incomplete data regarding how quickly rental units are typically leased, which is another important factor for potential investors.
In conclusion, while the Section 8 program offers a guaranteed gross yield of about 5.29%, the lack of specific market rent data and the low renter density in Smartsville present challenges for landlords and small-portfolio investors considering participation in the program. These factors should be carefully considered when evaluating investment opportunities in this ZIP code.
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.