Location: Sierra County, CA | Metro: Sierra 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 | $1,070 |
| 1 Bedroom | $1,170 |
| 2 Bedrooms | $1,530 |
| 3 Bedrooms | $2,120 |
| 4 Bedrooms | $2,530 |
| 5 Bedrooms | $2,935 |
| 6 Bedrooms | $3,287 |
| 7 Bedrooms | $3,550 |
| 8 Bedrooms | $3,728 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,530 | $227,011 | 0.67% | D |
| 3BR | $2,120 | $328,833 | 0.64% | D |
U.S. Census Bureau data (2024)
The ZIP code 96118, located in Loyalton, CA, has a population of 1,328 residents. Within this community, 24.9% are renters, indicating a modest rental market presence. The median household income stands at $54,167. However, specific market rent figures for this area are not available in the provided data.
To understand the depth of voucher demand, we compare the local median income to the Fair Market Rent (FMR) of $1,530, which is set for the fiscal year 2026 in the metro area. Assuming a standard 30% of income goes towards housing costs, the typical rent would consume approximately 33% of the median income, calculated by taking 30% of $54,167 and comparing it to $1,530. This suggests that the cost of housing is slightly above what is considered affordable based on income levels.
Given the lack of specific market rent data, it's important to note that the FMR provides a benchmark against which local rents can be assessed. If the actual market rent is close to the FMR, then the majority of renters would likely find it challenging to afford housing without assistance such as Section 8 vouchers.
In terms of tenant profile, landlords in ZIP 96118 should anticipate tenants who rely on Section 8 vouchers due to the higher-than-average housing costs relative to income. These tenants will typically have their rent subsidized up to the FMR, ensuring a steady and reliable income stream for landlords. It's also worth noting that the voucher demand is likely to be significant given the percentage of renters and the limited economic resources of the average household.
Landlords should prepare for tenants who might have lower incomes but are committed to paying their rent through the voucher program. While the rental market isn't heavily dominated by renters, there is sufficient demand to make Section 8 properties viable and potentially attractive investments, especially considering the financial support provided by the voucher system.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.