Section 8 Fair Market Rent (FMR) for ZIP 96120 - 2027

Location: Alpine County, CA | Metro: Alpine County, CA

Investment Score for ZIP 96120

F
Monthly Rent (2BR)
$1,670
Median Price (2BR)
$403,544
1% Rule
0.41%
Annual Yield
4.97%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size Monthly FMR
Studio$1,160
1 Bedroom$1,280
2 Bedrooms$1,670
3 Bedrooms$2,310
4 Bedrooms$2,760
5 Bedrooms$3,202
6 Bedrooms$3,586
7 Bedrooms$3,873
8 Bedrooms$4,067

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms Monthly FMR Median Price 1% Rule Grade
2BR $1,670 $403,544 0.41% F
3BR $2,310 $608,720 0.38% F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
1,349
Median Household Income
$100,417
Housing Units
535
Renter Percentage
18.8%
Occupancy Rate
64.5%
Renter Occupied
65

In ZIP code 96120, which encompasses Markleeville, CA, in Alpine County, the economics of Section 8 vouchers can be quite different from the local market conditions. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code for fiscal year 2026 is set at $1,710. This figure represents the maximum amount that the housing authority will reimburse landlords who participate in the Section 8 program for a unit of this size.

However, the local market rent for a similar two-bedroom apartment is much lower, running at around $1,200 according to the latest Census ACS data. This discrepancy between the SAFMR and the actual market rent presents both opportunities and challenges for landlords.

When a tenant uses a Section 8 voucher, they are responsible for paying a portion of the rent themselves, typically 30% of their adjusted income. In addition to this, there are utility allowances that vary but generally cover part of the tenant's energy costs. For simplicity, let's assume an average utility allowance of $200 per month. If we take the local market rent of $1,200 and add the utility allowance, the total comes to $1,400. At 30%, the tenant might pay approximately $360 towards the rent, leaving the remainder to be covered by the voucher.

The voucher would then cover the difference between the tenant's payment and the SAFMR. In this case, the voucher would pay up to $1,710 minus the tenant's contribution of $360, resulting in a reimbursement of up to $1,350. Since the total rent plus utilities is $1,400, this leaves a small surplus of $50 for the landlord. However, it's important to note that this surplus is contingent on the tenant's exact contribution and the specific utility allowance, which can vary.

In summary, landlords in Markleeville, CA, can expect to receive a reimbursement close to the local market rent when a tenant uses a Section 8 voucher, with a slight surplus due to the higher SAFMR. The reimbursement gap or surplus in this scenario is minimal, at around $50 per month, making participation in the Section 8 program financially viable for most landlords, especially given the stability and federal backing of the payments.

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.