Section 8 Fair Market Rent (FMR) for ZIP 95610 - 2027

Investment Score for ZIP 95610

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,850
1 Bedroom	$1,910
2 Bedrooms	$2,340
3 Bedrooms	$3,070
4 Bedrooms	$3,540
5 Bedrooms	$4,106
6 Bedrooms	$4,599
7 Bedrooms	$4,967
8 Bedrooms	$5,215

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$2,340	$373,707	0.63%	D
3BR	$3,070	$492,870	0.62%	D
4BR	$3,540	$550,482	0.64%	D
5BR	$4,106	$617,448	0.66%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 95610 (Citrus Heights, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 95610 is set by HUD for 2026 as follows: - 0BR: $1870 - 1BR: $1960 - 2BR: $2410 (34.7% of median income) - 3BR: $3210 - 4BR: $3700 These figures represent the maximum rent that a Section 8 voucher holder can pay for housing in Citrus Heights. However, it is important to note that the actual rents in the area significantly exceed these FMRs. For instance, the Zillow median price for a 2BR unit is $376,525, which translates to a monthly rental cost of approximately $1,569 based on a typical mortgage payment (assuming a 4.5% interest rate and a 20% down payment). This means the actual rental costs are much higher than the FMRs. The price-to-FMR ratio for a 2BR unit is 13.0x, indicating that the market rents are about 13 times the FMR. This suggests that landlords who want to participate in the Section 8 program must accept significantly lower rents compared to the market rates. The constraints for voucher holders include limited options due to the high disparity between market rents and FMRs, potentially leading to longer wait times for suitable housing. #### Affordability & Renter Profile Citrus Heights has a population of 46,928, with 47.1% of residents being renters. The occupancy rate stands at 96.4%, suggesting a relatively tight rental market with little vacancy. Given that the median household income is $83,327, the FMR for a 2BR unit ($2410) represents 34.7% of the median income. This indicates that a significant portion of the population may struggle to afford market-rate rentals without assistance. The high renter percentage and low vacancy rate suggest that the rental market is competitive, with many residents relying on affordable housing options. The FMRs are designed to ensure that low-income households can find suitable housing, but the reality is that they fall far short of covering market rents. Consequently, voucher holders face challenges in finding units that landlords are willing to accept under the Section 8 program. #### Investor Angle From an investor perspective, participating in the Section 8 program in ZIP code 95610 may present both opportunities and challenges. The FMRs are significantly lower than market rents, which could impact cash flow negatively if investors rely solely on Section 8 vouchers. For example, a 2BR unit with a market rent of $1,569 would need to be rented out for $2410 to meet the FMR threshold, but this is far below the actual market value. To determine whether this ZIP code is cash-flow positive at FMR, we need to consider the typical expenses associated with owning and renting out a property. These include mortgage payments, property taxes, insurance, maintenance, and other operational costs. Assuming a 2BR unit is valued at $376,525, with a 20% down payment and a 4.5% interest rate, the monthly mortgage payment would be around $1,569. Adding typical property taxes (around 1% of the home value annually), insurance, and maintenance costs, the total monthly expenses might be around $1,800-$2,000. At the FMR of $2410, the net cash flow would be positive, but only marginally so. The investment grade for properties in this ZIP code, when considering participation in the Section 8 program, would likely be moderate to low. While there is demand for affordable housing, the gap between FMR and market rents is substantial, making it less attractive for investors seeking high returns. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high disparity between FMR and market rents, investors should focus on smaller units such as 0BR or 1BR apartments. These units have lower FMRs ($1870 and $1960 respectively) and are more likely to generate positive cash flow when considering typical operational expenses. 2. **Consider Mixed-Income Developments**: To mitigate the risk of low cash flow, investors could consider developing mixed-income properties where some units are rented at market rates while others are rented to Section 8 voucher holders. This approach can balance the financial impact and provide a more stable revenue stream. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 95610 is to **Hold**. While there is a strong demand for affordable housing, the significant gap between FMR and market rents makes it challenging to achieve high returns. Investors should carefully evaluate their portfolio mix and consider focusing on smaller units or developing mixed-income properties to optimize their financial performance. --- This analysis provides a detailed overview of the rental market dynamics in Citrus Heights, California, specifically addressing the implications for Section 8 voucher holders and potential investors. The data clearly shows that while there is a robust rental market, the affordability constraints imposed by FMRs make it a challenging environment for both tenants and landlords.

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.