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 analysis of the Section 8 cap-rate scenario for ZIP code 96110 reveals some key insights into potential investment opportunities. The annualized Fair Market Rent (FMR) for a two-bedroom apartment in the metro area for fiscal year 2026 is set at $1,110 per month. However, the median home value and market rent for this area are not available, complicating a direct comparison.
To calculate the implied gross yield using the FMR, we first need to annualize the monthly rent. This results in an annual rental income of $13,320 for a two-bedroom unit. Without a specific median home value, we cannot provide an exact gross yield percentage, but it is important to note that the FMR represents the maximum amount that can be charged for a Section 8 voucher. This means that the actual rental income could be lower if the landlord charges less than the FMR.
In contrast, the lack of market rent data makes it difficult to determine the gross yield based on typical market conditions. The absence of this figure suggests that either there is limited rental activity or the data is not well-documented, which could indicate a less active real estate market overall.
Given the 16.0% renter density, it's reasonable to assume that the majority of residents in ZIP 96110 own their homes rather than rent. This low renter density implies that the demand for rental properties, including those participating in the Section 8 program, might be relatively low. Additionally, the absence of Days on Market (DOM) data further obscures the liquidity of rental properties in this area.
Comparing the two scenarios, the FMR-based gross yield is more concrete due to the availability of the FMR figure. However, the actual gross yield would depend on factors such as the specific property's value, operating costs, and vacancy rates. For investors considering Section 8 participation, the FMR provides a clear upper limit on rental income, but they must also consider the broader context of the local real estate market and tenant preferences.
While the FMR offers a benchmark for potential rental income, the reality of achieving this income in ZIP 96110 is uncertain without a clearer understanding of the market rent and property values. Investors should conduct thorough research and consult local real estate experts to better gauge the feasibility of Section 8 investments in this area.
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.