Section 8 Fair Market Rent (FMR) for ZIP 95160 - 2027

FY 2027 Fair Market Rent Rates

To classify ZIP code 95160 in Sacramento, California, we must rely on the available data: the Fair Market Rent (FMR) for Fiscal Year 2024 is set at $3,130. This figure represents the maximum amount that a landlord can charge for a property under the Section 8 program. However, the market rent and median home value data are not provided, which makes it challenging to assess the yield relative to these benchmarks.

The stability of the market in ZIP 95160 cannot be fully evaluated due to the lack of specific percentages of renters, days on market (DOM), and median household income. Without these details, we cannot determine if there is a high turnover rate among tenants or if the local economy supports stable rental demand.

Given the FMR of $3,130, landlords and small-portfolio investors can expect a defined level of cash flow. This is because the Section 8 program guarantees that tenants will pay a portion of their income towards rent, and the government will cover the difference up to the FMR. However, the absence of market rent and home value data means that we cannot compare the FMR to what might be charged in a private market scenario, leaving the yield assessment incomplete.

In conclusion, ZIP 95160 presents an opportunity for steady cash flow based on the FMR guarantee. However, without additional data on market conditions and economic indicators, it is impossible to fully classify whether this is a high-yield/low-stability market or a more stable investment zone. To make a more informed decision, landlords should seek out local real estate trends and economic data to complement the FMR figure.

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.