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 | $1,780 |
| 1 Bedroom | $1,830 |
| 2 Bedrooms | $2,250 |
| 3 Bedrooms | $2,950 |
| 4 Bedrooms | $3,400 |
| 5 Bedrooms | $3,944 |
| 6 Bedrooms | $4,417 |
| 7 Bedrooms | $4,770 |
| 8 Bedrooms | $5,009 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,950 | $609,958 | 0.48% | F |
U.S. Census Bureau data (2024)
The Section 8 program in ZIP code 95651 presents a unique opportunity for landlords and small-portfolio investors due to the disparity between the Fair Market Rent (FMR) and the actual market rent. The FMR for ZIP 95651 in fiscal year 2024 is set at $2300, while the Census American Community Survey (ACS) indicates that the average market rent is $2,104. This means that the FMR exceeds the market rent by $196, or approximately 9.3%.
The gap suggests that voucher tenants can potentially provide higher rental yields compared to open-market tenants. Landlords accepting Section 8 vouchers can charge up to the FMR rate, which is $2300, thereby securing a rental income above the current market average. This is particularly advantageous given the local context where 38.3% of residents are renters, indicating a substantial demand for affordable housing. Additionally, the median home value of $595,897 and the median household income of $103,537 highlight the financial landscape where many residents may find it challenging to afford market-rate rents without assistance.
However, accepting Section 8 tenants also comes with considerations regarding the administration and maintenance costs. While the higher rent amount might seem attractive, the overall cost of managing properties under the voucher program can sometimes offset the benefits. Landlords must be aware of the potential for increased vacancy periods and the administrative burden associated with the Section 8 process.
In conclusion, the $196 difference between the FMR and market rent represents an opportunity for landlords to achieve better yields. Nevertheless, it's crucial to weigh this against the realities of managing voucher tenants and the broader economic context of the area.
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.