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 | $2,450 |
| 1 Bedroom | $2,530 |
| 2 Bedrooms | $3,100 |
| 3 Bedrooms | $4,070 |
| 4 Bedrooms | $4,690 |
| 5 Bedrooms | $5,440 |
| 6 Bedrooms | $6,093 |
| 7 Bedrooms | $6,580 |
| 8 Bedrooms | $6,909 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $4,070 | $561,280 | 0.73% | D |
| 4BR | $4,690 | $621,127 | 0.76% | D |
| 5BR | $5,440 | $694,857 | 0.78% | D |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 95742, located within the Sacramento--Roseville--Arden-Arcade, CA HUD Metro FMR Area, reveals a favorable environment for those seeking stable cash flow. The HUD Fair Market Rent (FMR) for ZIP 95742 in fiscal year 2024 is set at $3110. In contrast, the Zillow Observed Rental Index (ZORI) for the same area stands at $2,697. This means that voucher tenants will generally cashflow positively at the FMR rate, allowing landlords to earn a monthly surplus of $413 per unit without considering expenses.
To further understand the investment potential, consider the median home value in ZIP 95742, which is $621,570. This yields a rent-to-price ratio of approximately 0.5%, indicating a relatively low rental yield compared to the property values. However, this does not necessarily diminish the attractiveness of the area for Section 8 investors, as the primary goal is often steady income rather than high rental yields.
The market dynamics show that the median days on market (DOM) for homes in this area is 41 days, suggesting a reasonably quick turnover for properties. Additionally, the price-cut share of 0.2% implies that there is little need for sellers to reduce their asking prices, reflecting a strong and stable housing market. These factors contribute to an environment where landlords can expect minimal vacancy periods and stable tenant retention.
In summary, ZIP 95742 offers a clear advantage for Section 8 investors due to positive cash flow from voucher tenants at the HUD FMR rate. While the rent-to-price ratio indicates a lower rental yield, the stability and predictability of the housing market make it an attractive option for those prioritizing consistent returns over rapid appreciation. The strongest investor angle in this scenario is cash flow.
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.