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 | $1,450 |
| 1 Bedroom | $1,570 |
| 2 Bedrooms | $1,970 |
| 3 Bedrooms | $2,630 |
| 4 Bedrooms | $2,970 |
| 5 Bedrooms | $3,445 |
| 6 Bedrooms | $3,858 |
| 7 Bedrooms | $4,167 |
| 8 Bedrooms | $4,375 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,970 | $524,186 | 0.38% | F |
| 3BR | $2,630 | $565,268 | 0.47% | F |
| 4BR | $2,970 | $642,983 | 0.46% | F |
| 5BR | $3,445 | $757,767 | 0.45% | F |
U.S. Census Bureau data (2024)
The real estate landscape in Dixon, CA (ZIP 95620), suggests a robust environment for landlords and small-portfolio investors. With a median home value of $606,795, the area presents an opportunity where homes are neither undervalued nor overpriced, maintaining a balanced market condition. The fact that only 0.1% of listings have reduced their prices indicates strong seller pricing power. This stability, combined with a 10-day median Days on Market (DOM), signals that homes are selling quickly, often at or above asking price, which is a positive sign for property owners looking to maintain or increase their equity.
On the rental side, the Federal Market Rent (FMR) for fiscal year 2024 stands at $2,020, while the actual market rent, as measured by Zillow's ZORI index, is $2,763. This gap between government estimates and actual market conditions highlights the potential for rental income to exceed the base expectations set by FMR. Landlords can leverage this to secure higher rents, especially when the local economy supports such rates.
For long-term investors, the setup in Dixon implies a realistic appreciation thesis based on the current market dynamics. The quick turnover rate and minimal price reductions suggest that demand outstrips supply, a scenario likely to persist given the ongoing population growth and economic activity in the region. This balance is crucial for maintaining asset values and ensuring steady capital appreciation over the next 12 to 24 months.
Moreover, the disparity between FMR and market rent offers a compelling reason for investors to hold onto properties rather than sell them. Rental income can be reinvested into property improvements, further increasing the property's value and making it more attractive to buyers if the decision is made to sell in the future. However, the appreciation thesis is contingent upon broader economic factors and local development trends that could influence property values.
In summary, the data points towards a market where landlords and small-portfolio investors can expect to maintain strong pricing power and potentially see modest appreciation. The combination of high market rents relative to FMR and a balanced home sales market supports a favorable outlook for those looking to capitalize on both rental income and property value growth.
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.