Location: Yolo, CA | Metro: Yolo, 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 | $1,500 |
| 1 Bedroom | $1,510 |
| 2 Bedrooms | $1,930 |
| 3 Bedrooms | $2,670 |
| 4 Bedrooms | $2,870 |
| 5 Bedrooms | $3,329 |
| 6 Bedrooms | $3,728 |
| 7 Bedrooms | $4,026 |
| 8 Bedrooms | $4,227 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,510 | $344,057 | 0.44% | F |
| 2BR | $1,930 | $412,397 | 0.47% | F |
| 3BR | $2,670 | $514,360 | 0.52% | F |
| 4BR | $2,870 | $651,245 | 0.44% | F |
| 5BR | $3,329 | $739,649 | 0.45% | F |
U.S. Census Bureau data (2024)
The ZIP code 95691, located in West Sacramento, CA, presents an interesting scenario for both renters and landlords. The median household income in this area stands at $104,750, while the market rate for rent, known as the Zillow Observed Rent Index (ZORI), is set at $2,212 per month. This places a significant financial burden on renters, especially when considering the typical affordability threshold which suggests that housing costs should not exceed 30% of a household’s income.
To put this into perspective, 30% of the median income in 95691 would be approximately $2,619 per month. However, the actual market rate of $2,212 is still quite high relative to this guideline, indicating that many households might struggle to find affordable housing without assistance.
Enter the Federal Market Rent (FMR) which, for ZIP 95691 in fiscal year 2024, is set at $1,700. This figure represents the maximum amount that housing authorities will pay landlords through the Housing Choice Voucher program, commonly known as Section 8. For landlords, this means that if they accept vouchers, their rental income will be capped at this amount, which is significantly lower than the market rate.
With 34.2% of the population being renters and a total population of 40,143, the competition among landlords is likely to be fierce, particularly for those who cater to voucher holders. Given the affordability gap between the market rate and the FMR, landlords who accept vouchers must balance the benefits of guaranteed payments against the potential for lower monthly rents.
The takeaway for landlords considering whether to accept vouchers or focus on cash-paying tenants is clear. While accepting vouchers provides a stable source of income, it caps your earnings at $1,700 per unit. On the other hand, targeting cash-paying tenants allows you to charge the market rate of $2,212, but this strategy requires a robust tenant screening process to ensure reliable payments from individuals who might be financially stretched.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.