Section 8 Fair Market Rent (FMR) for ZIP 95678 - 2027

Investment Score for ZIP 95678

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$2,100
1 Bedroom	$2,160
2 Bedrooms	$2,650
3 Bedrooms	$3,480
4 Bedrooms	$4,010
5 Bedrooms	$4,652
6 Bedrooms	$5,210
7 Bedrooms	$5,627
8 Bedrooms	$5,908

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$2,160	$310,986	0.69%	D
2BR	$2,650	$406,742	0.65%	D
3BR	$3,480	$530,367	0.66%	D
4BR	$4,010	$662,185	0.61%	D
5BR	$4,652	$792,742	0.59%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 95678 (Roseville, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 95678 is set by HUD for the year 2026. For a two-bedroom unit, the FMR is $2,750. This figure represents 32.8% of the median household income in Roseville, which stands at $100,554. The FMR is intended to reflect the average rent that voucher holders can afford. However, the actual rental market in Roseville is significantly higher. According to Zillow, the median price for a two-bedroom home is $408,912, which translates to a monthly mortgage payment of approximately $2,044 (assuming a 4.5% interest rate and a 20% down payment). When factoring in property taxes, insurance, and maintenance costs, the total monthly cost for landlords could easily exceed the FMR. This creates a challenging environment for voucher holders, who must find units that do not exceed the FMR. Given the high actual rental rates, it is likely that many landlords will not accept Section 8 vouchers due to the financial constraints they impose. The price-to-FMR ratio of 12.4x indicates that the market is far above what is considered affordable based on the FMR guidelines. #### Affordability & Renter Profile Roseville has a significant rental population, with 44.9% of residents renting their homes. The occupancy rate of 96.2% suggests that the housing market is tight, with few vacant units available. The median household income of $100,554 is relatively high, indicating that most renters have the means to pay market rates. However, the FMR for a three-bedroom unit is $3,660, which is only 36.4% of the median income. This implies that families with three or more bedrooms might struggle to find affordable housing options without assistance. Given the high percentage of renters and the tight occupancy rate, there is strong demand for rental properties in Roseville. However, the affordability gap between the FMR and market rates is substantial, making it difficult for low-income families to secure housing through Section 8 vouchers. #### Investor Angle From an investor perspective, the ZIP code 95678 presents mixed opportunities. While the rental market is robust, the FMR set by HUD is significantly lower than the actual market rates. A two-bedroom unit’s FMR of $2,750 is far below the median Zillow price of $408,912, which translates to a much higher effective rental cost. Landlords who accept Section 8 vouchers must adhere to these lower rent limits, which can result in reduced cash flow compared to market-rate rentals. To determine if this ZIP code is cash-flow positive at FMR, we need to consider the typical expenses associated with owning and managing a rental property. Assuming a mortgage payment of $2,044, property taxes of $1,000 per month, insurance of $100 per month, and maintenance costs of $200 per month, the total monthly expenses would be around $3,344. At the FMR of $2,750, landlords would face a negative cash flow of $594 per month. This makes accepting Section 8 vouchers financially unattractive for most investors. #### Specific Actionable Insights 1. **Focus on Larger Units**: Given the high demand for rental properties and the tight market, investors should consider focusing on larger units such as three-bedroom and four-bedroom homes. These units have higher FMRs ($3,660 and $4,220 respectively), which are closer to the actual market rates. This reduces the risk of negative cash flow and increases the likelihood of attracting tenants willing to pay market rates. 2. **Explore Alternative Assistance Programs**: Investors might want to explore alternative government assistance programs that offer higher reimbursement rates than Section 8. For instance, some local housing authorities provide additional subsidies for low-income families, which could help bridge the gap between FMR and market rates. 3. **Consider Short-Term Rentals**: Due to the high price-to-FMR ratio, short-term rentals like Airbnb could be a viable option. This allows investors to potentially earn more than the long-term rental FMR while still benefiting from the strong demand for housing in Roseville. #### Bottom Line For Section 8-focused investors, the ZIP code 95678 (Roseville, CA) is not recommended. The high price-to-FMR ratio and the resulting negative cash flow make it a challenging market to operate in. Instead, investors should look for areas where the FMR is closer to the actual market rates or explore alternative investment strategies that align better with the current economic conditions in Roseville. If forced to invest in this ZIP code, focusing on larger units and exploring alternative assistance programs would be the best approach to mitigate financial risks.

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.