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 | $1,840 |
| 1 Bedroom | $1,900 |
| 2 Bedrooms | $2,330 |
| 3 Bedrooms | $3,060 |
| 4 Bedrooms | $3,520 |
| 5 Bedrooms | $4,083 |
| 6 Bedrooms | $4,573 |
| 7 Bedrooms | $4,939 |
| 8 Bedrooms | $5,186 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,330 | $413,186 | 0.56% | F |
| 3BR | $3,060 | $522,393 | 0.59% | F |
| 4BR | $3,520 | $631,283 | 0.56% | F |
| 5BR | $4,083 | $862,623 | 0.47% | F |
U.S. Census Bureau data (2024)
The potential pitfalls for a Section 8 landlord in ZIP 95662, Orangevale, CA, begin with tenant turnover. The market rent stands at $2,119, while the Fair Market Rent (FMR) for FY 2024 is set at $2,290. This discrepancy can lead to frequent changes in occupancy, as tenants may struggle to afford the higher FMR when it comes due. Additionally, with a 10-day Days on Market (DOM), there is a significant risk of vacancy exposure. Landlords must be prepared to fill vacancies quickly to avoid financial strain.
The typical home value in ZIP 95662 is $561,819, which is relatively high compared to the median income of $96,689. This disparity increases the likelihood of deferred maintenance issues, as property owners might find themselves financially stretched to maintain their properties adequately. Deferred maintenance can lead to costly repairs and potential safety hazards, impacting both the property's value and the quality of life for tenants.
However, these risks are tempered by the high concentration of renters in the area. With 25.0% of residents being renters, there is a strong demand for rental housing, often leading to a robust number of Section 8 vouchers available. High renter density typically translates into a steady stream of qualified applicants, reducing the overall risk of vacancy and increasing the chances of finding reliable tenants.
In summary, the risks associated with tenant turnover, vacancy exposure, and deferred maintenance in ZIP 95662 are present but manageable given the high renter density and subsequent demand for housing assistance. For a first-time Section 8 landlord, the overall risk level is moderate.
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.