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 | $1,760 |
| 1 Bedroom | $1,810 |
| 2 Bedrooms | $2,220 |
| 3 Bedrooms | $2,910 |
| 4 Bedrooms | $3,360 |
| 5 Bedrooms | $3,898 |
| 6 Bedrooms | $4,366 |
| 7 Bedrooms | $4,715 |
| 8 Bedrooms | $4,951 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,220 | $618,615 | 0.36% | F |
| 3BR | $2,910 | $791,601 | 0.37% | F |
| 4BR | $3,360 | $1,178,444 | 0.29% | F |
| 5BR | $3,898 | $1,787,006 | 0.22% | F |
U.S. Census Bureau data (2024)
To determine if a landlord should invest in ZIP 95650 (Loomis, CA) for Section 8 properties, follow these steps:
Step 1: Does the Fair Market Rent (FMR) of $2330 cover the debt service on a property valued at $935,391?
Yes: If the FMR of $2330 per month is sufficient to cover the monthly mortgage payment and other expenses associated with the property, then the investment can be financially viable. Debt service includes principal and interest payments, property taxes, insurance, and maintenance costs.
No: If the FMR does not cover the debt service, investing in this ZIP code would result in financial losses. The landlord must ensure that the rental income meets or exceeds the total monthly outgoings.
Step 2: Compare the Zillow Observed Rent Index (ZORI) of $2,995 against the FMR.
ZORI Above FMR: With a ZORI of $2,995, which is higher than the FMR of $2330, landlords could potentially earn more from market-rate tenants than from Section 8 vouchers. This suggests that market-rate rentals might be more profitable.
ZORI At or Below FMR: If the ZORI were closer to or below the FMR, Section 8 would be a more competitive option. However, given the current figures, landlords should consider the possibility of earning higher rents from non-Section 8 tenants.
Step 3: Assess the demand for rentals in ZIP 95650.
It Depends: The ZIP code has 9.4% of its population renting, indicating a relatively low percentage of potential tenants. The Days on Market (DOM) is listed as N/A, suggesting either limited data or a stable market where properties are rented quickly once they become available. Given the ZORI being significantly higher than the FMR, the demand for Section 8 properties specifically may be lower.
In conclusion, a landlord should carefully evaluate whether the FMR of $2330 can cover the debt service on a property worth $935,391. The high ZORI of $2,995 indicates that market-rate rentals may be more profitable. The demand for rentals, while present at 9.4%, might not be strong enough for Section 8 properties due to the availability of higher-paying market-rate options. Landlords should also consider the broader economic context and local regulations before making an investment decision.
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.