Location: Tehama County, CA | Metro: Tehama 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 | $900 |
| 1 Bedroom | $990 |
| 2 Bedrooms | $1,290 |
| 3 Bedrooms | $1,790 |
| 4 Bedrooms | $2,160 |
| 5 Bedrooms | $2,506 |
| 6 Bedrooms | $2,807 |
| 7 Bedrooms | $3,032 |
| 8 Bedrooms | $3,184 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,290 | $252,569 | 0.51% | F |
| 3BR | $1,790 | $365,683 | 0.49% | F |
U.S. Census Bureau data (2024)
If a landlord is considering buying a property in ZIP code 96055 (Los Molinos, CA) for Section 8 purposes, they should follow this decision tree:
1) Does the Fair Market Rent (FMR) of $1,370 cover the debt service on a $318,055 property?
Yes: The FMR of $1,370 can potentially cover the debt service on a property priced at $318,055, assuming the mortgage rate and term allow for a monthly payment that does not exceed the FMR. Landlords must calculate their specific debt service costs to confirm.
No: If the debt service exceeds $1,370 per month, then relying solely on Section 8 payments will not be financially viable. The landlord would need to consider other income sources or subsidies to make up the difference.
2) Is the market rent of $1,182 above, at, or below the FMR?
Above FMR: If the market rent were above $1,370, it would indicate that there is potential for higher rents outside of Section 8. However, since the market rent is $1,182, it is below the FMR. This means that landlords might find it challenging to attract non-Section 8 tenants willing to pay the higher FMR.
At or Below FMR: With the market rent at $1,182, which is below the FMR, landlords can expect to receive a higher rental amount from Section 8 tenants compared to the average market rent. This could be an advantage in securing stable income.
3) Are 31.9% of residents renters and the number of days on the market (DOM) sufficient to meet demand?
It Depends: Thirty-one point nine percent of residents being renters suggests a moderate level of demand for rental properties. However, the lack of data on DOM makes it difficult to assess the speed at which rental units are filled. A low DOM would indicate strong demand, while a high DOM would suggest the opposite.
Given the data, if the landlord's debt service is covered by the FMR and the market rent is below the FMR, then ZIP 96055 could be a suitable location for a Section 8 investment. However, the absence of DOM data introduces uncertainty regarding the speed of tenant acquisition. Landlords should conduct further research to determine the DOM trends and ensure that the rental market meets their financial expectations.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.