Location: Yolo, CA | Metro: Yolo, 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 | $1,490 |
| 1 Bedroom | $1,500 |
| 2 Bedrooms | $1,920 |
| 3 Bedrooms | $2,660 |
| 4 Bedrooms | $2,870 |
| 5 Bedrooms | $3,329 |
| 6 Bedrooms | $3,728 |
| 7 Bedrooms | $4,026 |
| 8 Bedrooms | $4,227 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,920 | $358,294 | 0.54% | F |
| 3BR | $2,660 | $401,861 | 0.66% | D |
| 4BR | $2,870 | $533,063 | 0.54% | F |
| 5BR | $3,329 | $786,305 | 0.42% | F |
U.S. Census Bureau data (2024)
The real estate landscape in West Sacramento, CA (ZIP 95605), is defined by a median home value of $414,891. This figure suggests that homeownership is accessible to a broad range of buyers, particularly when compared to more affluent areas. The absence of percentage data on listings being reduced and the median days on market (DOM) indicates stability in the housing market, with neither an increase nor decrease in sales velocity or price adjustments signaling immediate changes.
On the rental side, the Federal Market Rent (FMR) for ZIP 95605 in fiscal year 2024 is set at $1,670, whereas the Zillow Observed Rental Index (ZORI) reflects a higher market rate of $2,183. This gap between government-subsidized rates and actual market conditions implies that landlords can maintain competitive rents above the subsidized levels without significant pressure to reduce prices. However, it also highlights a potential challenge for Section 8 tenants seeking affordable housing options, as the subsidy may not fully cover the market rent.
For long-hold investors, the setup in West Sacramento signals a moderate appreciation thesis. Given the stable median home values and the higher market rents compared to the FMR, there is a sustainable income stream from rentals. Over the next 12 to 24 months, the combination of accessible home values and a positive rental environment suggests that property values are likely to remain steady, if not slightly appreciate. This stability is crucial for investors looking to hold properties long-term, as it minimizes the risk of value erosion and supports a gradual growth strategy.
The data points to a balanced market where pricing power remains with the landlord, allowing for reasonable rent increases to keep pace with inflation and market conditions. For those with a portfolio in West Sacramento, the focus should be on maintaining property quality to ensure continued demand and leveraging the rental market dynamics to secure steady cash flows.
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.