Location: Modoc County, CA | Metro: Modoc County, CA
| 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 |
U.S. Census Bureau data (2024)
The rental market in ZIP 96108 is characterized by a significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for the metro area in fiscal year 2026 is set at $1,110, while the average market rent, according to recent data from Zillow, stands at $2,000. This represents a difference of $890, or approximately 80%, between the FMR and the market rate.
In this context, landlords and small-portfolio investors must consider the implications of accepting housing vouchers. When the FMR is lower than the market rent, as it is here, landlords who accept voucher tenants are effectively subsidizing the cost of housing. This can be seen as a cost play, as they will receive less rent compared to what they could charge open-market tenants.
The ZIP 96108 has 0.0% renters, indicating that the majority of residents own their homes. The median home value and median income figures are not available, which makes it challenging to fully assess the financial landscape. However, given the substantial gap between FMR and market rent, it is clear that landlords need to weigh the benefits and drawbacks of accepting Section 8 tenants carefully. While it may provide a steady stream of income, it also means operating at a lower margin compared to the open market.
To maximize returns, landlords should consider the broader economic environment and the specific needs of their properties. Accepting voucher tenants can be a strategic choice if the goal is to ensure occupancy and manage risk, but it comes at the cost of reduced rental income.
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.