Location: Sacramento--Roseville--Arden-Arcade, CA | Metro: Sacramento--Roseville--Arden-Arcade, CA HUD Metro FMR Area
| 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 |
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). 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.