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 | $1,810 |
| 1 Bedroom | $1,870 |
| 2 Bedrooms | $2,290 |
| 3 Bedrooms | $3,000 |
| 4 Bedrooms | $3,460 |
| 5 Bedrooms | $4,014 |
| 6 Bedrooms | $4,496 |
| 7 Bedrooms | $4,856 |
| 8 Bedrooms | $5,099 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,290 | $654,431 | 0.35% | F |
| 3BR | $3,000 | $883,724 | 0.34% | F |
| 4BR | $3,460 | $1,168,657 | 0.3% | F |
| 5BR | $4,014 | $1,375,390 | 0.29% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors targeting ZIP code 95658 in Newcastle, California, reveals a favorable environment for cashflow generation. The HUD Fair Market Rent (FMR) for ZIP 95658 is set at $2100 for fiscal year 2024. In contrast, the Census American Community Survey (ACS) reports the average market rent for the area at $1771. This indicates that voucher tenants will cashflow at the FMR rate, providing a consistent and reliable income stream for landlords.
To further analyze the investment potential, consider the median home value in Newcastle, which stands at $930,743. The rent-to-price ratio, calculated using the HUD FMR, is approximately 0.22%, suggesting that rental properties in this area offer a relatively low cost compared to the overall property values. This ratio supports the idea that rental income can be a significant portion of the total property value, making it an attractive option for investors focused on generating steady cashflow.
Note that the median days on market (DOM) and the percentage of homes that required price cuts are not applicable in this scenario, as the data provided does not include these metrics. However, given the strong cashflow potential derived from the disparity between the HUD FMR and the actual market rent, these factors are less critical to the overall investment strategy.
The strongest investor angle in ZIP 95658 is undoubtedly cashflow, due to the higher HUD FMR compared to the average market rent, ensuring positive cashflow even when accounting for typical operating expenses.
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.