Location: Mono County, CA | Metro: Mono 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 | $1,720 |
| 1 Bedroom | $1,990 |
| 2 Bedrooms | $2,470 |
| 3 Bedrooms | $3,040 |
| 4 Bedrooms | $4,080 |
| 5 Bedrooms | $4,733 |
| 6 Bedrooms | $5,301 |
| 7 Bedrooms | $5,725 |
| 8 Bedrooms | $6,011 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,470 | $293,175 | 0.84% | C |
| 3BR | $3,040 | $398,086 | 0.76% | D |
U.S. Census Bureau data (2024)
In evaluating whether to invest in ZIP code 96107 (Coleville, CA) for Section 8 properties, follow this decision tree based on the specific data points provided.
Step 1: Determine if the Fair Market Rent (FMR) of $1,640 can cover the debt service on a property valued at $347,614. To make this assessment, calculate the monthly mortgage payment, including principal, interest, taxes, and insurance. For a $347,614 property with a typical loan-to-value ratio and interest rate, the monthly debt service might be around $1,500 to $1,800. If the debt service is less than or equal to $1,640, then the answer is yes, FMR clears debt service. If it exceeds $1,640, the answer is no, making it unviable without additional income sources or subsidies.
Step 2: Compare the market rent of $2,152 against the FMR of $1,640. If the market rent is above the FMR, it indicates that there's potential for higher rents outside of Section 8. However, this also means that Section 8 tenants may find the rent too high. In Coleville, the market rent is significantly above the FMR, suggesting that while there is a gap between what the market demands and what Section 8 covers, it doesn't automatically preclude investment. It depends on the landlord's willingness to accept lower rents and the availability of Section 8 vouchers.
Step 3: Assess the rental demand. The data shows that 31.9% of households are renters, but the days on market (DOM) is listed as N/A, which means we lack crucial information about how quickly rental units are occupied. With only 31.9% of households renting, demand is moderate. This percentage alone does not provide enough insight into whether there is sufficient demand to fill a property. If the DOM were available and showed quick occupancy rates, it would suggest strong demand despite the moderate percentage of renters. Without DOM data, the answer is it depends on other local factors such as vacancy rates, economic stability, and the competition for rental units.
To conclude, if the FMR of $1,640 meets or exceeds your calculated debt service, you have a viable starting point. The market rent being higher than FMR presents both challenges and opportunities, depending on your strategy. Lastly, the moderate rental percentage combined with the unknown DOM makes the demand uncertain, requiring further investigation into local rental market conditions before making a final decision.
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.