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 | $314,428 | 0.49% | F |
| 3BR | $2,120 | $393,141 | 0.54% | F |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 96125, Sierra City, CA, stands at $1,530 for the fiscal year 2026. This figure represents the payment standard set by the U.S. Department of Housing and Urban Development (HUD) for the Section 8 program. It's important to note that this is not the rent you will charge your tenants; it's the maximum amount HUD will pay towards a tenant's rent.
In comparison to the local median rent, which is currently listed as N/A, the FMR provides a benchmark for what is considered fair rent in the area. This can help you determine if the rent you're planning to charge aligns with market rates.
The 0.0% renter share indicates that there is no expected contribution from the tenant toward their rent under the Section 8 program. This means that the entirety of the rent would be covered by the government, up to the FMR limit of $1,530. However, this does not necessarily mean there is no demand for rentals in the area. It simply reflects the current subsidy structure.
The average home price in Sierra City is approximately $340,148. This is the acquisition cost you should consider when purchasing a property for your first Section 8 rental. While this might seem high, remember that the FMR sets a cap on the rent assistance, so the property value must be assessed against the potential rental income and government subsidies.
Before proceeding with your investment, you must verify that the property meets the Housing Quality Standards (HQS). This ensures that the property is safe and habitable, which is a requirement for participation in the Section 8 program. Failure to meet these standards could result in disqualification from the program, leading to financial losses.
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.