Section 8 Fair Market Rent (FMR) for ZIP 96101 - 2027

Location: Modoc County, CA | Metro: Modoc County, CA

Investment Score for ZIP 96101

Monthly Rent (2BR)

$1,120

Median Price (2BR)

$134,611

1% Rule

0.83%

Annual Yield

9.98%

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	$780
1 Bedroom	$880
2 Bedrooms	$1,120
3 Bedrooms	$1,550
4 Bedrooms	$1,850
5 Bedrooms	$2,146
6 Bedrooms	$2,404
7 Bedrooms	$2,596
8 Bedrooms	$2,726

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,120	$134,611	0.83%	C
3BR	$1,550	$201,731	0.77%	D
4BR	$1,850	$253,345	0.73%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

5,142

Median Household Income

$61,680

Housing Units

2,517

Renter Percentage

27.0%

Occupancy Rate

76.6%

Renter Occupied

521

The ZIP code 96101 encompasses Alturas, California, a small city located in Modoc County in the northeastern part of the state. This area offers a unique blend of rural charm and outdoor recreational opportunities, attracting residents who seek a slower pace of life. The following analysis provides key insights for landlords and small-portfolio investors considering investments in this region.

Fair Market Rent (FMR) for the metro area for fiscal year 2026 is set at $1,130. This figure represents the maximum amount that a low-income family should pay for housing and serves as a benchmark for rental prices.
The average market rent for the area is $841, according to the Census American Community Survey (ACS). This indicates that current rents are below the FMR, potentially offering room for growth or adjustment in rental pricing strategies.
The median home value in Alturas is $175,722. This relatively low median value can be advantageous for investors looking to acquire properties at a lower cost compared to more urbanized areas.
Renters make up 27.0% of the housing market in Alturas. This suggests a moderate demand for rental properties, indicating potential stability but also limits the overall size of the rental market.
The median household income in the area is $61,680. This figure reflects the economic conditions of the local population and their ability to afford higher rents or property values.

The data points above paint a picture of a stable yet modest rental market in Alturas, California. With the Fair Market Rent exceeding current market rates, there is potential for rental price increases, although this must be balanced against the local median income levels. The median home value is quite low, which could provide opportunities for acquisition at favorable prices. However, the relatively low renter share implies that the rental market is not as expansive as in more densely populated areas. Investors should consider these factors when evaluating the potential returns and risks associated with property investments in Alturas, ensuring they align with the local economic realities and housing needs.

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.