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 | $1,270 |
| 1 Bedroom | $1,310 |
| 2 Bedrooms | $1,610 |
| 3 Bedrooms | $2,110 |
| 4 Bedrooms | $2,440 |
| 5 Bedrooms | $2,830 |
| 6 Bedrooms | $3,170 |
| 7 Bedrooms | $3,424 |
| 8 Bedrooms | $3,595 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,610 | $349,495 | 0.46% | F |
| 3BR | $2,110 | $485,234 | 0.43% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 95714, Dutch Flat, California, reveals interesting insights into potential investment returns. For a two-bedroom unit, the Fair Market Rent (FMR) for FY 2024 is set at $1,890 annually, while the Census ACS indicates a market rent of $1,125 per month.
To calculate the implied gross yield, we first annualize the market rent to $13,500 ($1,125 x 12 months). The median home value in Dutch Flat is $416,319. Using the FMR scenario, the implied gross yield is approximately 4.54% ($1890 / $416319 x 100). In contrast, using the market rent scenario, the implied gross yield drops to 3.24% ($13500 / $416319 x 100).
Given that only 22.6% of the population in Dutch Flat are renters, it suggests a relatively low demand for rental properties compared to owner-occupied homes. This lower renter density could impact the stability and attractiveness of long-term rental investments, especially those reliant on market rents rather than government-subsidized programs like Section 8.
The FMR of $1890 per month under the Section 8 program provides a more stable income stream due to government backing. However, the lack of data on Days on Market (DOM) makes it challenging to assess how quickly properties can be leased under either scenario. Despite this, the higher implied gross yield of 4.54% based on the FMR is more favorable for investors seeking a better return on their capital.
In conclusion, while both the FMR and market rent scenarios offer different gross yields, the FMR-based yield of 4.54% presents a more attractive option for landlords and small-portfolio investors considering the relatively low renter density in Dutch Flat. The stability provided by the Section 8 program offsets some of the risks associated with lower rental demand.
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.