Location: Siskiyou County, CA | Metro: Siskiyou 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 | $870 |
| 1 Bedroom | $880 |
| 2 Bedrooms | $1,130 |
| 3 Bedrooms | $1,570 |
| 4 Bedrooms | $1,730 |
| 5 Bedrooms | $2,007 |
| 6 Bedrooms | $2,248 |
| 7 Bedrooms | $2,428 |
| 8 Bedrooms | $2,549 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,130 | $122,847 | 0.92% | C |
| 3BR | $1,570 | $177,383 | 0.89% | C |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP 96023 (Dorris, CA) reveals a distinct difference between the federally determined Fair Market Rent (FMR) and the actual market rent conditions. Using the annualized 2BR FMR of $1,090 (for FY 2026), the potential rental income for a property would be $13,080 per year. Given the median home value of $135,919, this translates into an implied gross yield of approximately 9.6%. The calculation is straightforward: divide the annual rental income by the property value.
In contrast, using the market rent figure of $734 (as reported by Census ACS), the annual rental income would be significantly lower at $8,808. This results in an implied gross yield of only about 6.5%. The disparity between these two yields underscores the importance of understanding the local rental market dynamics when considering Section 8 investments.
The federally set FMR of $1,090 appears more generous compared to the actual market rent of $734, suggesting that properties in Dorris, CA, might command higher rents through Section 8 contracts. However, the 40.2% renter density indicates a moderate demand for rentals, which could impact the ability to consistently achieve the higher FMR rate. The lack of data on days on market (DOM) makes it challenging to assess how quickly properties can be leased, but typically, a higher renter density suggests a faster turnover.
Given the data, the gross yield based on the FMR is more optimistic and likely represents the upper limit of what landlords can expect from Section 8 participation. However, the market rent yield of 6.5% is closer to the reality faced by most landlords, as it reflects the actual rental rates in the area. It's important to note that while the FMR scenario offers a higher gross yield, the actual performance may vary due to factors such as tenant selection, property management costs, and local market conditions.
To summarize, the gross yield derived from the FMR is 9.6%, whereas the market rent scenario implies a gross yield of 6.5%. While the former is appealing, the latter is more reflective of current market realities. Landlords and small-portfolio investors should consider the 6.5% gross yield as a more realistic baseline for their investment projections in ZIP 96023.
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.