Location: Plumas 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 | $1,050 |
| 1 Bedroom | $1,160 |
| 2 Bedrooms | $1,450 |
| 3 Bedrooms | $1,960 |
| 4 Bedrooms | $2,340 |
| 5 Bedrooms | $2,714 |
| 6 Bedrooms | $3,040 |
| 7 Bedrooms | $3,283 |
| 8 Bedrooms | $3,447 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,450 | $294,841 | 0.49% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 95981, located in Plumas County, California, operate under specific guidelines and financial considerations. For a two-bedroom rental unit, the SAFMR (Small Area Fair Market Rent) is set at $1230 per month for fiscal year 2024. This SAFMR is unique to this ZIP code, reflecting the local rental market conditions.
The SAFMR does not necessarily equate to the full amount a landlord will receive from a Section 8 voucher. The program operates on a principle where the tenant is responsible for paying a portion of the rent, typically around 30% of their income. The remaining portion is subsidized by the government. However, the subsidy cannot exceed the SAFMR, meaning if the market rent exceeds $1230, the landlord will only receive up to this amount from the voucher.
To illustrate, assume a tenant's portion of the rent is $369 (which is 30% of an assumed income of $1230). In this scenario, the government would cover the difference between the tenant's payment and the SAFMR. Therefore, the landlord would receive $369 from the tenant plus $861 from the government, totaling $1230 per month.
Section 8 vouchers also include utility allowances. These allowances vary but generally cover a significant portion of utilities such as electricity, water, and gas. For ZIP 95981, the utility allowance for a two-bedroom unit might be around $200 per month, though this figure can change based on local utility costs and the specific terms of the voucher.
In ZIP 95981, the local market rent is currently not available. This makes it difficult to determine if landlords are receiving less than the market rate due to the SAFMR cap. However, if the market rent were higher than $1230, landlords would face a reimbursement gap, meaning they would not receive the full market rent from the voucher and tenant combined.
If the market rent were lower than the SAFMR, landlords could potentially benefit from a surplus, receiving more than the typical market rent. But given the SAFMR of $1230, landlords must ensure that their two-bedroom units do not exceed this rate to avoid losing out on potential rental income.
In conclusion, for a two-bedroom unit in ZIP 95981, the typical reimbursement gap or surplus depends on the actual local market rent. With the SAFMR set at $1230, landlords should adjust their expectations accordingly, especially since the local market rent data is currently unavailable. They must be prepared for either a gap or surplus, contingent upon the relationship between the SAFMR and the true market rates.
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.