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 | $1,310 |
| 1 Bedroom | $1,350 |
| 2 Bedrooms | $1,680 |
| 3 Bedrooms | $2,330 |
| 4 Bedrooms | $2,680 |
| 5 Bedrooms | $3,109 |
| 6 Bedrooms | $3,482 |
| 7 Bedrooms | $3,761 |
| 8 Bedrooms | $3,949 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,680 | $423,113 | 0.4% | F |
| 3BR | $2,330 | $561,875 | 0.41% | F |
| 4BR | $2,680 | $707,312 | 0.38% | F |
U.S. Census Bureau data (2024)
The market in ZIP 95703, Applegate, CA, is characterized by a distinct imbalance between supply and demand, favoring the latter. The Fair Market Rent (FMR) for the area, set at $2280 for fiscal year 2024, significantly exceeds the reported market rent of $1,347 based on Census ACS data. This gap suggests that the rental market is currently undervalued relative to what might be expected given broader regional trends, indicating strong potential for upward pressure on rents.
The median home value in Applegate stands at $547,286. While this figure provides insight into the overall cost of homeownership, it does not directly indicate whether the supply of homes is outpacing demand. However, the absence of data regarding the percentage of price cuts and days on market (DOM) implies a stable or tight market, where homes either sell quickly or do not require significant price adjustments to attract buyers. This stability supports the notion of a market where demand is robust.
The 15.3% renter share in Applegate is noteworthy. A lower percentage of renters compared to homeowners can imply a higher level of long-term housing stability, but it also means that there's a smaller segment of the population who might be under financial strain, unable to afford homeownership. This demographic characteristic indicates a community that leans towards owning rather than renting, which can exert long-term pressure on the rental market as those who cannot afford to buy may struggle to find affordable housing.
In summary, the dynamics in ZIP 95703 suggest a market where demand pressures are evident, particularly in the rental sector. Landlords and small-portfolio investors should monitor these trends closely, as they indicate a potential for increased rental income and property values in the future.
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.