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 | $1,700 |
| 1 Bedroom | $1,870 |
| 2 Bedrooms | $2,340 |
| 3 Bedrooms | $3,050 |
| 4 Bedrooms | $3,480 |
| 5 Bedrooms | $4,037 |
| 6 Bedrooms | $4,521 |
| 7 Bedrooms | $4,883 |
| 8 Bedrooms | $5,127 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,340 | $461,185 | 0.51% | F |
| 3BR | $3,050 | $587,545 | 0.52% | F |
| 4BR | $3,480 | $692,833 | 0.5% | F |
| 5BR | $4,037 | $805,186 | 0.5% | F |
U.S. Census Bureau data (2024)
The Section 8 program in ZIP code 95688, located in Vacaville, CA, presents a notable opportunity for landlords and small-portfolio investors due to the disparity between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $2260, while the market rent, measured by Zillow's ZORI, stands at $2513. This creates a gap of $253, or approximately 11%, where landlords can either benefit or face challenges depending on their strategy.
When the FMR is lower than the market rent, as it is in Vacaville, landlords who accept housing vouchers must be prepared to rent properties at a rate below the open-market value. This means that if you choose to participate in the Section 8 program, you will receive $2260 per month for a unit that could otherwise command a higher rental price of $2513. The decision to rent to voucher tenants should be made with an understanding of the local rental market dynamics and the financial implications.
Vacaville has a significant portion of its population renting homes, with 29.3% of residents classified as renters. The median home value in the area is $663,246, which is relatively high compared to the median household income of $118,186. These factors indicate a potentially robust demand for rental properties, especially those that are affordable through government assistance programs like Section 8.
Accepting Section 8 tenants can be a strategic move for yield-focused investors. Despite the lower rent, the stability and reliability of receiving payments from the Housing Choice Voucher program can provide a consistent cash flow. However, it's crucial to weigh this against the potential for higher yields from market-rate rentals, considering the local economic conditions and the cost of maintaining properties to meet program standards.
In summary, the gap between the FMR and market rent in ZIP 95688 offers insights into the local rental market and the considerations for landlords and investors. While there is a $253 shortfall per unit when accepting Section 8 tenants, the benefits of stable tenancy and the local context of high home values and moderate incomes make this a viable option for those seeking long-term, dependable returns.
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.