Location: Sierra County, CA | Metro: Sierra County, CA
| 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 |
U.S. Census Bureau data (2024)
To determine if you should buy in ZIP code 96126 for Section 8, follow this decision tree:
1) Does FMR $1,530 clear debt service on a $488,631 property?
Yes: The Fair Market Rent (FMR) of $1,530 can cover the debt service on a property valued at $488,631. This indicates that a Section 8 tenant could potentially pay enough to meet the financial obligations of owning the property.
No: If the FMR of $1,530 does not cover the debt service on a $488,631 property, then it would not be financially viable to acquire the property solely for Section 8 tenants. You must ensure that the rental income meets or exceeds the cost of ownership.
2) Is market rent above, at, or below FMR?
Above FMR: If the market rent is higher than the FMR of $1,530, then it's possible to find non-Section 8 tenants willing to pay more. However, this also means that Section 8 tenants might struggle to find housing, reducing demand for your property under this program.
At FMR: If the market rent is around $1,530, then the property aligns well with what Section 8 can pay. This scenario suggests that Section 8 tenants can afford the rent, making it a viable option for landlords who want to participate in the program.
Below FMR: If the market rent is below the FMR of $1,530, then Section 8 can provide a stable source of income. However, the data shows that market rent is N/A, so you cannot make a direct comparison without further investigation into local rental trends.
3) Are 19.9% renters + N/A-day DOM enough demand?
Enough Demand: With 19.9% of residents being renters, there is a decent portion of the population looking for housing. However, the Days on Market (DOM) for rental properties is listed as N/A, which means you need to look into how quickly properties typically get rented in this area. If the DOM is low, it indicates strong demand.
Not Enough Demand: If the DOM is high, it suggests that rental properties take longer to be occupied, indicating weaker demand. In such a case, relying on Section 8 alone might not be sufficient to ensure steady occupancy.
The final decision will depend on the answers to these questions. If the FMR clears debt service, the market rent is either at or below FMR, and there is enough demand indicated by low DOM, then the answer is Yes. Otherwise, it may depend on additional factors such as property management costs, vacancy rates, and the overall economic outlook of ZIP 96126.
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.