Location: Sacramento--Roseville--Arden-Arcade, CA | Metro: Sacramento--Roseville--Arden-Arcade, CA HUD Metro FMR Area
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 | $1,480 |
| 1 Bedroom | $1,520 |
| 2 Bedrooms | $1,870 |
| 3 Bedrooms | $2,450 |
| 4 Bedrooms | $2,830 |
| 5 Bedrooms | $3,283 |
| 6 Bedrooms | $3,677 |
| 7 Bedrooms | $3,971 |
| 8 Bedrooms | $4,170 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,520 | $365,468 | 0.42% | F |
| 2BR | $1,870 | $432,995 | 0.43% | F |
| 3BR | $2,450 | $597,905 | 0.41% | F |
| 4BR | $2,830 | $774,422 | 0.37% | F |
| 5BR | $3,283 | $932,741 | 0.35% | F |
U.S. Census Bureau data (2024)
ZIP 95603, located in Auburn, CA, within the Sacramento--Roseville--Arden-Arcade, CA HUD Metro FMR Area, serves as an effective diversifier in a Section 8 portfolio strategy. The median home value in this area stands at $616,676, indicating a relatively high-value residential market. However, the median income of $85,357 suggests that there is a significant segment of the population that relies on rental properties, with 30.4% of residents being renters.
The Fair Market Rent (FMR) for ZIP 95603 in fiscal year 2024 is set at $1840, while the current market rent for the area averages $2,175. This $335 difference between the FMR and market rent demonstrates the potential for landlords to earn a stable income through Section 8 tenants without compromising on rental rates significantly.
Auburn's rental market also exhibits characteristics favorable for diversification. With a 0.2% price-cut share and a 14-day Days on Market (DOM), landlords can expect minimal need to reduce rents to attract tenants and quick turnover times once a property becomes available. These factors contribute to maintaining consistent cash flows and reducing vacancy risks.
Incorporating ZIP 95603 into a Section 8 portfolio strategy allows investors to tap into a market where rental demand is robust, despite higher overall property values. This balance provides a strategic hedge against market volatility and ensures a mix of steady income and potential for property value appreciation over time.
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.