Location: Vallejo, 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 | $2,060 |
| 1 Bedroom | $2,070 |
| 2 Bedrooms | $2,650 |
| 3 Bedrooms | $3,670 |
| 4 Bedrooms | $3,840 |
| 5 Bedrooms | $4,454 |
| 6 Bedrooms | $4,988 |
| 7 Bedrooms | $5,387 |
| 8 Bedrooms | $5,656 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,650 | $473,252 | 0.56% | F |
| 3BR | $3,670 | $729,096 | 0.5% | F |
| 4BR | $3,840 | $1,009,012 | 0.38% | F |
| 5BR | $4,454 | $1,306,977 | 0.34% | F |
U.S. Census Bureau data (2024)
The ZIP code 95618, located in Davis, California, presents a balanced scenario when classified on the axes of yield and stability. With a Fair Market Rent (FMR) of $2,300 for the fiscal year 2024, it closely aligns with the market rent of $2,341. This suggests that rental properties in this area can expect competitive returns relative to their costs, without the volatility often associated with areas where FMR significantly undercuts market rents.
However, the median home value of $846,408 implies a higher barrier to entry for potential property investors, as they would need to invest a substantial amount upfront to acquire a property. This figure also reflects the overall wealth of the area, which can be indicative of lower vacancy rates and more stable tenancy.
In terms of stability, the ZIP code benefits from a robust rental market, with 44.2% of residents being renters. Additionally, the average Days on Market (DOM) for rentals stands at 9 days, indicating a swift turnover rate and suggesting strong demand for rental units. The median household income of $115,591 further supports the stability of the rental market, as it indicates a relatively affluent population capable of paying consistent rent.
Given these metrics, ZIP 95618 leans towards being a steady-cashflow zone. The close alignment between FMR and market rent, combined with a high median income and low DOM, points to a reliable and predictable rental market. While the high median home value might make it less appealing for those looking for quick flips or high yields with minimal investment, it offers a solid foundation for long-term investments aimed at generating stable 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.