Location: Siskiyou County, CA | Metro: Modoc 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 | $870 |
| 1 Bedroom | $880 |
| 2 Bedrooms | $1,130 |
| 3 Bedrooms | $1,570 |
| 4 Bedrooms | $1,730 |
| 5 Bedrooms | $2,007 |
| 6 Bedrooms | $2,248 |
| 7 Bedrooms | $2,428 |
| 8 Bedrooms | $2,549 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,130 | $113,725 | 0.99% | C |
| 3BR | $1,570 | $190,338 | 0.82% | C |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 96134 in California reveals a notable difference between the federally determined Fair Market Rent (FMR) and the actual market rent. Using the provided figures, we can calculate the gross yield for both scenarios.
First, let's consider the annualized Federally Determined FMR for a 2-bedroom apartment, which is set at $1,090 per month. This translates to an annual rental income of $13,080. Given the median home value in the area is $154,081, the implied gross yield for a property rented under Section 8 would be approximately 8.49%. This is calculated by dividing the annual rental income by the median home value: $13,080 / $154,081 = 0.0849, or 8.49%.
Next, we'll look at the market rent, which stands at $833 per month according to the Census ACS data. Annualizing this figure gives us an annual rental income of $9,996. When compared to the median home value, the implied gross yield for a market-rent scenario drops significantly to about 6.49%. This calculation follows the same logic: $9,996 / $154,081 = 0.0649, or 6.49%.
The disparity between these two yields highlights the financial implications for landlords and small-portfolio investors considering Section 8 versus market rent. The higher gross yield under the Section 8 program suggests a potentially more attractive investment opportunity, especially for those who qualify for the program. However, it's important to note that the actual gross yield can vary based on the specific property and its location within the ZIP code.
Given the 25.4% renter density in ZIP 96134, it's evident that a significant portion of residents are already in the rental market, which could support demand for both market and Section 8 rentals. The N/A-day DOM (Days on Market) indicates incomplete data, which might suggest either a robust local market where properties sell quickly, or an anomaly in reporting. Investors should consider these factors when deciding whether to participate in the Section 8 program or aim for market rents.
In conclusion, while the Section 8 program offers a higher gross yield of 8.49%, the market rent scenario provides a lower but still competitive yield of 6.49%. Both scenarios present viable options for investment, with the choice depending largely on the investor's goals and the specifics of the local housing market.
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.