Location: Trinity County, CA | Metro: Trinity County, CA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $800 |
| 1 Bedroom | $880 |
| 2 Bedrooms | $1,150 |
| 3 Bedrooms | $1,510 |
| 4 Bedrooms | $1,510 |
| 5 Bedrooms | $1,752 |
| 6 Bedrooms | $1,962 |
| 7 Bedrooms | $2,119 |
| 8 Bedrooms | $2,225 |
U.S. Census Bureau data (2024)
The median home value in ZIP 96046 is $334,800. For the purposes of this analysis, we will use this figure to calculate the implied gross yield. The annualized 2BR Fair Market Rent (FMR) for ZIP 96046, as of fiscal year 2026, is $14,400 ($1,200 per month).
To derive the implied gross yield for a Section 8 property, we divide the annualized rent by the median home value. In this case, the implied gross yield is approximately 4.30%. This calculation assumes that the property is rented out at the FMR rate, which is a reasonable starting point for evaluating the potential returns.
Unfortunately, there is no readily available data for the market rent in ZIP 96046. However, given the high renter density of 55.6%, it is likely that the market rent would be higher than the FMR. Without specific market rent figures, we cannot provide an exact implied gross yield for the market scenario. But we can infer that the gross yield would be higher than the Section 8 scenario due to the higher rent.
The 55.6% renter density suggests a strong demand for rental properties in the area. While the median home value provides a basis for estimating the gross yield, the lack of specific market rent data makes it difficult to provide a precise comparison between the Section 8 and market yields. However, it is clear that the market rent would offer a better return on investment than the Section 8 rent.
In conclusion, the Section 8 scenario provides an implied gross yield of about 4.30%, while the market rent scenario would likely offer a higher yield. Given the strong renter density, investing in market-rate rentals could be more profitable, but the stability and guaranteed income from Section 8 might appeal to certain investors. The decision ultimately depends on the investor's risk tolerance and financial goals.
Note: The implied gross yield does not account for operating expenses, taxes, or other costs associated with owning and managing a rental property. Investors should perform their own detailed calculations to determine the net operating income (NOI) and overall profitability of a potential investment.
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.