Location: Nevada County, CA | Metro: Nevada County, CA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,320 |
| 1 Bedroom | $1,440 |
| 2 Bedrooms | $1,890 |
| 3 Bedrooms | $2,620 |
| 4 Bedrooms | $3,160 |
| 5 Bedrooms | $3,666 |
| 6 Bedrooms | $4,106 |
| 7 Bedrooms | $4,434 |
| 8 Bedrooms | $4,656 |
The analysis for ZIP code 96160 in California regarding Section 8 cap rates and market rents reveals incomplete data, making it challenging to provide a precise financial outlook. However, we can derive some general insights based on the available information.
The Fair Market Rent (FMR) for a two-bedroom apartment in ZIP 96160, as determined by HUD for fiscal year 2026, is $1,810 per month. This figure represents the government-set limit for Section 8 housing assistance payments. To annualize this, we multiply by 12, yielding an annual rent of $21,720.
Unfortunately, the median home value and market rent for this ZIP code are not available, which complicates the calculation of the gross yield for a typical investment property. The gross yield is calculated as the annual rental income divided by the property's purchase price. Without knowing the median home value or market rent, we cannot provide a direct comparison between the Section 8 scenario and the market rent scenario.
In the case of a property rented under Section 8, the gross yield would be based on the $21,720 annual rent. For example, if a property were purchased at the median home value (which is currently unknown), the gross yield would be the annual rent divided by that purchase price. If the median home value were hypothetically $300,000, the gross yield would be 7.24%. However, this calculation is purely illustrative due to the lack of actual median home value data.
The absence of market rent data means we cannot calculate the gross yield for renting outside of Section 8. Typically, market rents would offer a higher gross yield compared to Section 8 rents, but without specific figures, this remains speculative.
Given the N/A% renter density and the N/A-day days on market (DOM), it is difficult to assess which scenario is more realistic. Renter density indicates the proportion of renters in the area, while DOM reflects how quickly properties are rented out. Higher renter density and shorter DOM generally favor market rents over Section 8, but these factors cannot be evaluated here without concrete data.
In conclusion, while the Section 8 FMR provides a baseline for potential rental income, the lack of median home value and market rent data prevents a detailed comparison. Investors should seek additional local market data to make informed decisions about the relative benefits of Section 8 versus market rent scenarios in ZIP 96160.
Data Sources: FMR data from HUD (2027).
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.