Location: Vallejo, CA | Metro: Vallejo, CA MSA
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 | $1,910 |
| 1 Bedroom | $2,100 |
| 2 Bedrooms | $2,620 |
| 3 Bedrooms | $3,420 |
| 4 Bedrooms | $3,900 |
| 5 Bedrooms | $4,524 |
| 6 Bedrooms | $5,067 |
| 7 Bedrooms | $5,472 |
| 8 Bedrooms | $5,746 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,100 | $328,265 | 0.64% | D |
| 2BR | $2,620 | $418,976 | 0.63% | D |
| 3BR | $3,420 | $547,412 | 0.62% | D |
| 4BR | $3,900 | $625,593 | 0.62% | D |
| 5BR | $4,524 | $778,365 | 0.58% | F |
U.S. Census Bureau data (2024)
Vacaville’s 95687 ZIP code functions as a strategic suburban hub within Solano County, characterized by a blend of residential stability and logistical advantage. The area is largely defined by its proximity to major transportation corridors and a significant presence of healthcare and public sector employers, with Kaiser Permanente’s Vacaville Medical Center serving as a major local institution. This infrastructure supports a family-oriented environment that appeals to long-term residents seeking quieter living while maintaining access to the broader Sacramento and San Francisco metro areas.
From a financial perspective, the math for 2026 reveals tight margins. The projected Full FMR for a 2-bedroom unit is $2,410, while current market rent sits at $2,433, resulting in a negligible gap of $23. This indicates that standard voucher payments will slightly lag open-market rates. Median home values are robust at $581,848, yet the market moves at a moderate pace, with a median days on market of 58 days. Investors should note that the median 2BR sale price is $424,755, offering a slightly more accessible entry point compared to the mid-tier aggregate.
Demand fundamentals remain strong, driven by a median household income of $109,566 and a renter share of 33.1%. This income level suggests that the local tenant pool, including voucher holders, possesses the financial capacity to sustain rents, though competition is high. The area is served by well-regarded institutions such as California State University, Sacramento (though slightly further afield) and solid local school districts, which enhances the appeal for families seeking stability through the Section 8 program.
The strongest investor angle in 95687 is stability rather than aggressive cash flow. Because the 2BR FMR trails market rent by only $23, landlords will not achieve a significant premium over the market, but they secure a government-backed revenue stream in an area with high household income and institutional employers. The combination of a $581,848 median home value and moderate turnover speed points toward steady appreciation and consistent occupancy, making this a defensive play for long-term portfolio growth.
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.