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 | $1,920 |
| 1 Bedroom | $1,980 |
| 2 Bedrooms | $2,430 |
| 3 Bedrooms | $3,190 |
| 4 Bedrooms | $3,680 |
| 5 Bedrooms | $4,269 |
| 6 Bedrooms | $4,781 |
| 7 Bedrooms | $5,163 |
| 8 Bedrooms | $5,421 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,430 | $413,272 | 0.59% | F |
| 3BR | $3,190 | $546,240 | 0.58% | F |
| 4BR | $3,680 | $651,267 | 0.57% | F |
| 5BR | $4,269 | $736,162 | 0.58% | F |
U.S. Census Bureau data (2024)
Elk Grove, specifically the 95624 ZIP code, is characterized by a thriving suburban atmosphere with a strong emphasis on family living and community planning. The city has evolved significantly from its agricultural roots into a major residential hub, offering extensive park systems and a well-maintained network of trails. While the economy is diverse, the presence of major employers like the Elk Grove Unified School District underscores the area’s stability and draws families seeking long-term housing options near quality educational institutions.
From a numerical standpoint, the rental market presents a clear arbitrage challenge. The FY2024 HUD SAFMR for a 2-bedroom unit is $2,390, which falls below the current market rent of $2,713 (Zillow ZORI), leaving a gap of $323 per month. Investors looking at acquisition face a median home value of $641,686, with a median 2BR specific price of $421,684. Turnover is rapid here, as evidenced by a median days on market of just 15 days, indicating high velocity but also competitive pressure from market-rate renters who can easily pay above the HUD limits.
The tenant pool is anchored by a solid economic foundation, with a median household income of $125,332, yet the renter share sits at a relatively low 22.7%. This demographic composition suggests that voucher demand exists but competes with a large population of high-income earners. Access to top-rated schools within the Elk Grove Unified School District and proximity to major transit corridors like Highway 99 enhances the area’s desirability for families, though the high income baseline means the local Section 8 waitlist may be competitive due to the area’s general affordability relative to surrounding Sacramento suburbs.
The Section 8 verdict for 95624 leans toward stability and appreciation rather than immediate cashflow maximization. With the 2BR voucher rate trailing market rents by $323, relying solely on HUD payments leaves money on the table compared to standard market leasing. However, the rapid 15-day turnover rate and significant home equity growth potential make this a strong play for investors prioritizing asset appreciation and low vacancy risk over maximizing monthly subsidy spreads.
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.