Location: Plumas County, CA | Metro: Plumas County, CA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $990 |
| 1 Bedroom | $1,090 |
| 2 Bedrooms | $1,420 |
| 3 Bedrooms | $1,880 |
| 4 Bedrooms | $1,960 |
| 5 Bedrooms | $2,274 |
| 6 Bedrooms | $2,547 |
| 7 Bedrooms | $2,751 |
| 8 Bedrooms | $2,889 |
U.S. Census Bureau data (2024)
The median home value in ZIP 95984 is $281,145. This figure is crucial when evaluating the potential returns on investment through Section 8 properties.
The Fair Market Rent (FMR) for a 2-bedroom apartment in ZIP 95984, based on FY 2026 data, is $1,410 annually. Given this FMR, the implied gross yield for a property rented under Section 8 would be approximately 5.01%. This calculation is derived by dividing the annualized rent ($1,410) by the median home value ($281,145).
However, the market rent for the area is not available, making it challenging to provide an accurate comparison between Section 8 and market rents. Nonetheless, it's worth noting that the median home value is significantly lower than the national average, suggesting a potentially attractive investment opportunity for those willing to navigate the intricacies of the Section 8 program.
The renter density in ZIP 95984 stands at 19.6%, indicating a relatively low proportion of renters compared to homeowners. This statistic could influence the demand for Section 8 properties, though it does not directly impact the gross yield calculation.
The Days on Market (DOM) is not specified, which means we cannot determine how quickly properties typically sell or lease in this area. However, this detail is critical for assessing liquidity and should be considered alongside the gross yield.
In conclusion, the Section 8 cap rate scenario suggests a gross yield of around 5.01% for a 2-bedroom apartment in ZIP 95984. While this figure is based on the provided FMR, it offers a clear benchmark for investors considering Section 8 properties. The lack of market rent data makes a direct comparison difficult, but the lower median home value indicates that Section 8 properties could still offer a competitive investment opportunity.
Data Sources: FMR data from HUD (2027). 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.