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 | $2,130 |
| 1 Bedroom | $2,190 |
| 2 Bedrooms | $2,690 |
| 3 Bedrooms | $3,530 |
| 4 Bedrooms | $4,070 |
| 5 Bedrooms | $4,721 |
| 6 Bedrooms | $5,288 |
| 7 Bedrooms | $5,711 |
| 8 Bedrooms | $5,997 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,690 | $393,020 | 0.68% | D |
| 3BR | $3,530 | $583,164 | 0.61% | D |
| 4BR | $4,070 | $754,840 | 0.54% | F |
| 5BR | $4,721 | $1,041,066 | 0.45% | F |
U.S. Census Bureau data (2024)
The potential pitfalls for a Section 8 landlord in ZIP 95677, Rocklin, CA, are significant and should be carefully considered before investing. Firstly, tenant turnover can be a major issue, with the market rent at $2,303 compared to the Fair Market Rent (FMR) of $2,560 for FY 2024. This discrepancy indicates that tenants might struggle to cover the difference between their voucher amount and the actual rent, leading to higher turnover rates and increased administrative burdens.
Vacancy exposure is another concern, as the days on market (DOM) data is not available, which makes it difficult to predict how long it might take to find a new tenant. In an area where typical home values stand at $655,609 and median incomes are $105,713, landlords must also prepare for deferred maintenance costs. The high property values suggest that repairs and upkeep could be expensive, especially if the tenants cannot afford to contribute to such expenses.
Despite these challenges, there are factors that mitigate the risks. The renter share in ZIP 95677 is 33.7%, indicating a relatively high concentration of renters. High renter density usually translates into greater demand for rental properties, including those accepting Section 8 vouchers. This suggests that finding qualified tenants might be easier than in areas with lower renter populations.
A final consideration is the local economic environment. With median incomes of $105,713, residents have the financial stability to support a robust rental market, even if some tenants rely on Section 8 assistance. However, the disparity between market rent and FMR points to a potential strain on tenant finances, which could affect their ability to maintain homes or stay long-term.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.