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 | $1,820 |
| 1 Bedroom | $1,900 |
| 2 Bedrooms | $2,350 |
| 3 Bedrooms | $3,190 |
| 4 Bedrooms | $3,690 |
| 5 Bedrooms | $4,280 |
| 6 Bedrooms | $4,794 |
| 7 Bedrooms | $5,178 |
| 8 Bedrooms | $5,437 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,350 | $498,412 | 0.47% | F |
| 3BR | $3,190 | $631,573 | 0.51% | F |
| 4BR | $3,690 | $887,294 | 0.42% | F |
U.S. Census Bureau data (2024)
The Section 8 program in ZIP code 95722, which encompasses Meadow Vista, CA, presents a unique opportunity for landlords and small-portfolio investors due to the significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for the area is set at $3020 for fiscal year 2024, while the Census ACS reports the average market rent to be $1855. This means that the FMR is $1165 higher than the market rent, representing an increase of approximately 62.8%.
In this scenario, where the FMR exceeds the market rent, landlords can leverage the Section 8 program to achieve a higher yield on their rental properties. Voucher tenants under the Section 8 program pay a portion of their rent based on their income, typically around 30% of their adjusted monthly income. The government then covers the difference up to the FMR. Given that the median household income in Meadow Vista is $125,625, it's reasonable to expect that voucher recipients would pay a smaller share of the rent, making the overall yield more attractive.
The median home value in Meadow Vista is $676,061, indicating a relatively affluent neighborhood where only about 8.8% of residents are renters. This low percentage of renters suggests a competitive market for rental properties, potentially driving down market rents. However, the Section 8 program offers a stable and reliable source of income, as the government guarantees payment up to the FMR.
Investing in Section 8 properties in Meadow Vista can be seen as a strategic move to capitalize on the discrepancy between FMR and market rent. It allows landlords to charge closer to the FMR without the risk of vacancy, as the government ensures timely payments. Additionally, the program provides a steady stream of tenants who have undergone background checks and meet eligibility criteria, reducing the likelihood of problematic tenancy.
To summarize, the gap between the FMR and market rent in ZIP 95722 makes Section 8 properties a compelling investment option. Landlords can benefit from higher yields compared to the local market, while also enjoying the security and stability provided by the government-backed program. This analysis underscores the potential profitability of Section 8 properties in Meadow Vista, given the economic conditions and the favorable rent-to-income ratio.
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.