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 | $1,860 |
| 1 Bedroom | $1,960 |
| 2 Bedrooms | $2,390 |
| 3 Bedrooms | $3,160 |
| 4 Bedrooms | $3,670 |
| 5 Bedrooms | $4,257 |
| 6 Bedrooms | $4,768 |
| 7 Bedrooms | $5,149 |
| 8 Bedrooms | $5,406 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $3,160 | $524,880 | 0.6% | D |
U.S. Census Bureau data (2024)
The HUD Fair Market Rent (FMR) for ZIP code 95681 in the Sacramento--Roseville--Arden-Arcade, CA HUD Metro FMR Area for fiscal year 2024 is set at $2420. This figure is notably higher than the reported market rent of $1835, based on Census ACS data. For landlords participating in the Section 8 program, this means that voucher tenants can provide positive cash flow when renting at the HUD FMR rate. The difference between the HUD FMR and the market rent suggests that landlords can expect a margin of about $585 per unit, which translates into a substantial monthly profit.
To further analyze the investment potential, consider the median home value in ZIP 95681, which stands at $541,419. Using the HUD FMR of $2420 as a monthly rental benchmark, we can calculate a rough rent-to-price ratio of approximately 0.44%. This ratio indicates that rental income alone would take a significant amount of time to recoup the purchase price, making it less favorable for buy-and-hold investors seeking immediate returns through rental income. However, the positive cash flow from Section 8 vouchers makes it an attractive option for those focused on stable, government-backed rental income.
The dynamics of days on market (DOM) and price-cut shares are not applicable in this scenario due to the nature of the Section 8 program, which does not rely on typical market fluctuations for its rental rates. Instead, the focus should be on the guaranteed income stream and the stability provided by the federal housing assistance program.
The strongest investor angle in ZIP 95681 is cash flow, given the significant gap between the HUD FMR and the local market rent. Landlords can secure a reliable tenant base while earning a notable profit each month, making this area particularly suitable for those looking to generate consistent income from their investments.
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.