Section 8 Fair Market Rent (FMR) for ZIP 95991 - 2027

Investment Score for ZIP 95991

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	$1,200
1 Bedroom	$1,410
2 Bedrooms	$1,650
3 Bedrooms	$2,280
4 Bedrooms	$2,760
5 Bedrooms	$3,202
6 Bedrooms	$3,586
7 Bedrooms	$3,873
8 Bedrooms	$4,067

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,410	$208,968	0.67%	D
2BR	$1,650	$271,911	0.61%	D
3BR	$2,280	$397,544	0.57%	F
4BR	$2,760	$473,919	0.58%	F
5BR	$3,202	$567,397	0.56%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 95991 (Yuba City, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for Yuba City, CA (ZIP 95991), as set by HUD for 2026, provide insight into the rental market dynamics. For a two-bedroom unit, the FMR is $1640, which represents 27.9% of the median household income of $70,590. This indicates that the cost of renting a two-bedroom apartment is relatively affordable compared to the average income in the area. However, the actual rents can be significantly higher. The Zillow median price for a two-bedroom home in this ZIP code is $268,751, which translates to a monthly mortgage payment of approximately $1370 based on a 4.5% interest rate over a 30-year term. This does not include property taxes, insurance, and maintenance costs, which would further increase the total monthly cost. Given the price-to-FMR ratio of 13.7x, it is clear that actual market rents far exceed the FMR. For example, a two-bedroom unit priced at $268,751 would have a monthly mortgage payment that is nearly nine times the FMR ($1370 vs. $1640). This means that tenants using Section 8 vouchers will likely face significant challenges finding units that landlords are willing to accept at the FMR rates. Landlords often prefer market-rate rents, which can be much higher than the FMR. #### Affordability & Renter Profile With a renter population of 49.3%, Yuba City has a substantial number of residents who rely on rental housing. The occupancy rate of 95.3% suggests that there is a high demand for rental properties, indicating a tight market where supply may not meet demand. Given the median household income of $70,590, many renters may struggle to afford market-rate rents, especially for larger units. The FMR for a three-bedroom unit is $2280, which is 32.3% of the median income, making it challenging for families to find affordable housing without assistance. The high price-to-FMR ratio also points to a market where affordability is a critical issue. The median Zillow price for a two-bedroom home is $268,751, which is well above the FMR. This suggests that the majority of rental units in the market are priced beyond what most renters can afford, particularly those relying on Section 8 vouchers. #### Investor Angle From an investor perspective, the ZIP code 95991 presents a mixed picture. While the high demand for rental properties and the tight market suggest potential opportunities, the FMR rates set by HUD are significantly lower than the actual market rents. An investor looking to purchase a two-bedroom property for $268,751 and rent it out at the FMR of $1640 would likely see negative cash flow, given the additional costs associated with owning a property, such as property taxes, insurance, and maintenance. To determine if the ZIP code is cash-flow positive at FMR, we need to consider these additional expenses. Assuming a property tax rate of 1.25% (which is typical for California), the annual property tax on a $268,751 home would be $3359.26, or about $280 per month. Adding a conservative estimate of $100 per month for insurance and $50 per month for maintenance, the total monthly expenses would be around $430. Therefore, the net monthly income from renting at the FMR would be $1640 - $430 = $1210, which is less than the mortgage payment of $1370. This indicates that the market is not cash-flow positive at FMR. The investment grade for this ZIP code would be considered low due to the negative cash flow potential and the difficulty in finding landlords willing to accept Section 8 vouchers at the FMR rates. Investors should carefully consider the financial implications before entering this market. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should focus on smaller units like one-bedroom apartments. The FMR for a one-bedroom unit is $1350, which is closer to the actual market rents for smaller units. This could potentially offer a better chance of positive cash flow. 2. **Consider Location-Specific Strategies**: In a tight market like Yuba City, investors should look for areas with lower property values or where there is a higher concentration of Section 8 voucher holders. This could help in securing a property at a more reasonable price and finding tenants who are able to pay the FMR. 3. **Negotiate with Landlords**: Since the actual market rents are so much higher than the FMR, investors might need to negotiate with landlords to accept the FMR rates. Offering incentives such as guaranteed timely payments or covering some of the additional costs could make the deal more attractive to landlords. #### Bottom Line Based on the provided data, the recommendation for Section 8-focused investors in ZIP code 95991 (Yuba City, CA) is to **Skip** this market. The high price-to-FMR ratio and the tight rental market indicate that it is difficult to achieve positive cash flow at the FMR rates. Additionally, the challenge of finding landlords willing to accept Section 8 vouchers at these rates makes it a less favorable investment opportunity. Investors should consider other markets with more favorable conditions for Section 8 properties.

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.