Location: Sacramento--Roseville--Arden-Arcade, CA | Metro: Sacramento--Roseville--Arden-Arcade, CA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $2,310 |
| 1 Bedroom | $2,380 |
| 2 Bedrooms | $2,920 |
| 3 Bedrooms | $3,830 |
| 4 Bedrooms | $4,420 |
| 5 Bedrooms | $5,127 |
| 6 Bedrooms | $5,742 |
| 7 Bedrooms | $6,201 |
| 8 Bedrooms | $6,511 |
U.S. Census Bureau data (2024)
In ZIP code 95671, the Section 8 economics can be quite straightforward if you understand how the payments are structured. The SAFMR (Section 8 Area Fair Market Rent) for a two-bedroom apartment is set at $2030 per month for fiscal year 2024. This figure is specific to this ZIP code, meaning it is tailored to reflect the rental market conditions here.
The local market rent, according to Census ACS data, is $1,420 for a two-bedroom unit. This indicates that the SAFMR is higher than the average market rent, which is beneficial for landlords. However, it's important to note that the actual amount paid to landlords under the Section 8 program is not simply the SAFMR but a combination of factors including the tenant's portion of the rent and utility allowances.
A voucher holder pays 30% of their adjusted income toward rent. The remainder of the rent up to the SAFMR is covered by the housing authority. Utility allowances are also provided, which vary based on the size of the unit and other factors. For a two-bedroom apartment, the utility allowance is typically included in the overall reimbursement calculation.
To illustrate, let’s assume a tenant’s adjusted income is $1,500 per month. Thirty percent of this income would be $450, which is what the tenant pays towards rent. If the SAFMR for a two-bedroom unit is $2030, the housing authority would cover the difference between the tenant’s payment and the SAFMR, up to the limit of $2030. In this scenario, the housing authority would pay $1580 ($2030 - $450).
Utility allowances are separate and can vary. Typically, they are around $150-$200 per month for a two-bedroom unit. This amount is directly reimbursed to the landlord by the housing authority, on top of the base rent reimbursement.
In ZIP 95671, given the SAFMR of $2030 and assuming an average utility allowance of $175, the total reimbursement to a landlord could be approximately $1755 ($1580 + $175). This leaves a surplus compared to the local market rent of $1,420, meaning landlords could potentially earn more than the typical market rate when renting to Section 8 tenants.
The typical surplus for a two-bedroom apartment in ZIP 95671 would be around $335 per month ($1755 - $1,420). This surplus can be used to cover maintenance costs, property management fees, or to improve your cash flow. It’s important to remember that while the SAFMR provides a cap, the actual reimbursement is tied to the tenant’s income and the specific terms of their voucher.
Data Sources: FMR data from HUD (2027). 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.