Location: Modoc County, CA | Metro: Modoc 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 | $750 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $1,080 |
| 3 Bedrooms | $1,500 |
| 4 Bedrooms | $1,780 |
| 5 Bedrooms | $2,065 |
| 6 Bedrooms | $2,313 |
| 7 Bedrooms | $2,498 |
| 8 Bedrooms | $2,623 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,080 | $200,589 | 0.54% | F |
| 3BR | $1,500 | $250,743 | 0.6% | F |
U.S. Census Bureau data (2024)
ZIP 96104, located in Cedarville, CA, within the Modoc County, CA metro area, serves as an ideal cash-flow anchor for a Section 8 portfolio strategy. The Federal Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,110. This figure represents the maximum allowable rent for Section 8 housing in the area, ensuring a stable and predictable income stream for landlords.
The median home value in ZIP 96104 stands at $226,499, which is relatively low compared to many other metropolitan areas. This makes it easier for landlords to acquire properties without requiring a large capital investment. Moreover, the lack of available market data suggests that the rental market is less volatile and more stable, reducing the risk of sudden fluctuations in rental prices.
The spread between the FMR and the market rent is significant. Since the market rent is not available, it indicates that the FMR is likely higher than what the typical market would bear. This means landlords can rely on the Section 8 program to provide a rent that exceeds the average market rate, thus ensuring positive cash flow even if the property's value does not appreciate significantly over time.
Additionally, the 28.6% renter share and median income of $52,794 support the idea that this ZIP code is suitable for a cash-flow anchor. The renter share is substantial enough to ensure a steady demand for rental properties, while the median income suggests that tenants are likely to be financially stable and able to meet their rental obligations.
In conclusion, ZIP 96104 provides a solid foundation for a Section 8 portfolio due to its stable rental market, predictable income from the FMR, and the financial stability of its residents. Landlords and small-portfolio investors should consider this ZIP code as a reliable source of consistent cash flow.
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.