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 | $1,730 |
| 1 Bedroom | $1,780 |
| 2 Bedrooms | $2,190 |
| 3 Bedrooms | $2,870 |
| 4 Bedrooms | $3,310 |
| 5 Bedrooms | $3,840 |
| 6 Bedrooms | $4,301 |
| 7 Bedrooms | $4,645 |
| 8 Bedrooms | $4,877 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,190 | $353,075 | 0.62% | D |
| 3BR | $2,870 | $443,584 | 0.65% | D |
| 4BR | $3,310 | $535,405 | 0.62% | D |
U.S. Census Bureau data (2024)
The potential pitfalls of investing in ZIP 95619 in Diamond Springs, CA, under the Section 8 program are significant. Tenant turnover poses a substantial challenge due to the stark difference between the market rent of $1,669 and the Fair Market Rent (FMR) of $2,350 for FY 2024. This gap suggests that tenants may struggle to afford higher rents once they leave the Section 8 program, leading to frequent changes in occupancy.
Vacancy exposure is another critical concern. The Days on Market (DOM) for the area is not available, which makes it difficult to predict how long properties might remain vacant. Given the typical home value of $437,742 and the median income of $66,429, there's a considerable risk of deferred maintenance. Landlords must be prepared to invest in property upkeep, as tenants may not have the financial resources to cover such costs.
However, these risks are somewhat mitigated by the high renter share of 37.1%. A large proportion of renters typically translates into a robust demand for housing vouchers, which can stabilize cash flow and reduce vacancy rates. The local economy, while not affluent, supports a steady rental market, making Section 8 investments viable despite the challenges.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.