Location: Lassen County, CA | Metro: Lassen 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 | $890 |
| 1 Bedroom | $1,050 |
| 2 Bedrooms | $1,250 |
| 3 Bedrooms | $1,730 |
| 4 Bedrooms | $2,090 |
| 5 Bedrooms | $2,424 |
| 6 Bedrooms | $2,715 |
| 7 Bedrooms | $2,932 |
| 8 Bedrooms | $3,079 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,730 | $232,631 | 0.74% | D |
U.S. Census Bureau data (2024)
The Section 8 program's impact in ZIP code 96109 is significant, given the disparity between the Fair Market Rent (FMR) and the actual market rent. The FMR for the metro area in fiscal year 2026 is set at $1,280, whereas the Census ACS data indicates that the average market rent is $836. This creates a gap of $444, or approximately 35%, between what landlords can charge voucher tenants and the typical rent paid by other renters.
In this scenario where the FMR exceeds the market rent, voucher tenants present a unique opportunity for landlords and small-portfolio investors. By accepting Section 8 vouchers, property owners can secure a higher rental income than the prevailing market rate. This makes it a yield play, as properties leased to voucher holders can generate an additional $444 per month compared to non-voucher tenants, enhancing overall profitability.
The ZIP code 96109 has a relatively low percentage of renters at 11.9%, indicating a smaller pool of potential voucher tenants. However, the median home value stands at $183,451, suggesting a stable residential market. Additionally, the median income of $43,988 provides insight into the economic conditions of the area, which can influence the demand for affordable housing options.
Landlords should consider the administrative aspects of managing Section 8 properties, such as compliance with HUD regulations and the potential for longer-term tenancy. Despite these factors, the financial incentive of receiving higher rent payments through the voucher program outweighs the costs, making it a strategic investment for those looking to maximize returns in ZIP 96109.
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.