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 | $1,610 |
| 1 Bedroom | $1,660 |
| 2 Bedrooms | $2,040 |
| 3 Bedrooms | $2,680 |
| 4 Bedrooms | $3,090 |
| 5 Bedrooms | $3,584 |
| 6 Bedrooms | $4,014 |
| 7 Bedrooms | $4,335 |
| 8 Bedrooms | $4,552 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,040 | $329,450 | 0.62% | D |
| 3BR | $2,680 | $378,146 | 0.71% | D |
| 4BR | $3,090 | $411,137 | 0.75% | D |
| 5BR | $3,584 | $462,463 | 0.77% | D |
U.S. Census Bureau data (2024)
A landlord considering ZIP 95660 (Sacramento, CA) for a Section 8 investment must evaluate several factors. The first step is to determine if the Fair Market Rent (FMR) of $1,870 for the fiscal year 2024 can cover the debt service on a property valued at $388,994. To calculate this, you need to know the annual debt service, which includes mortgage payments, taxes, insurance, and maintenance costs. Assuming an average annual debt service of around $18,000, the FMR would comfortably cover it, allowing for a positive cash flow. However, if the annual debt service exceeds $22,440 ($1,870 * 12 months), then the answer is No: FMR does not clear debt service.
The second consideration is comparing the Zillow Observed Rental Index (ZORI) of $2,162 to the FMR. If market rents are above the FMR, then landlords might prefer to seek tenants outside the Section 8 program due to higher potential income. In this case, since ZORI is higher than FMR, the answer is No: market rent is above FMR, suggesting that landlords could potentially earn more without relying on Section 8.
If market rents are at or below the FMR, the next question is whether there is sufficient rental demand. In ZIP 95660, 38.0% of residents are renters, and the days on market (DOM) is 24. This indicates a moderate level of demand. Given these figures, the answer is It Depends. While the percentage of renters is decent, the relatively low DOM suggests competition among landlords. Landlords should consider their ability to manage properties effectively and the likelihood of securing Section 8 tenants quickly.
To summarize:
Ultimately, the decision to invest in Section 8 properties in ZIP 95660 hinges on financial feasibility and rental market conditions.
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.