Section 8 Fair Market Rent (FMR) for ZIP 95757 - 2027

Investment Score for ZIP 95757

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$2,480
1 Bedroom	$2,550
2 Bedrooms	$3,130
3 Bedrooms	$4,110
4 Bedrooms	$4,730
5 Bedrooms	$5,487
6 Bedrooms	$6,145
7 Bedrooms	$6,637
8 Bedrooms	$6,969

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$3,130	$512,534	0.61%	D
3BR	$4,110	$609,045	0.67%	D
4BR	$4,730	$706,576	0.67%	D
5BR	$5,487	$802,001	0.68%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 95757 (Elk Grove, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 95757 in Elk Grove, California, is set by HUD for 2026. For a two-bedroom apartment, the FMR is $3280. However, the actual rent for a two-bedroom unit in this area, according to Zillow, is $517,386, which translates to a monthly price-to-FMR ratio of approximately 13.1 times the FMR. This means that the actual rental cost is significantly higher than the FMR, making it challenging for Section 8 voucher holders to find suitable housing. The voucher program typically covers up to 100% of the FMR, but in this case, the actual rents far exceed the FMR, thus placing a heavy burden on voucher recipients to cover the difference out-of-pocket. #### Affordability & Renter Profile ZIP 95757 has a median household income of $138,198, which places it in a relatively high-income bracket. Given that 26.5% of the population are renters, it suggests that there is a significant demand for rental properties. The occupancy rate of 97.6% indicates that the rental market is very tight, with few vacancies available. This high occupancy rate and the substantial gap between the FMR and actual rents suggest that the market is highly competitive and not particularly affordable for low-income renters. #### Investor Angle From an investor’s perspective, the ZIP code 95757 presents a mixed picture when considering cash flow and investment grade based on the FMR. The FMR for a two-bedroom apartment is $3280, while the actual rent is $517,386, or about $43,115 per month. Given the high actual rent compared to the FMR, investors who rely solely on Section 8 vouchers will likely face challenges in achieving positive cash flow. The FMR represents only a fraction of the actual rent, meaning that landlords would need to seek additional sources of revenue or subsidies to make ends meet. The investment grade in this ZIP code is likely to be lower due to the high costs associated with renting and the limited number of units that fall within the FMR range. Investors should consider the broader rental market dynamics and potential subsidies beyond just the Section 8 vouchers to determine if the investment is viable. #### Specific Actionable Insights 1. **Focus on Units Below FMR**: Investors should look for properties where the rent is below or close to the FMR. For instance, a two-bedroom unit priced at $3280 or less would be more attractive to Section 8 voucher holders and could potentially generate positive cash flow. This would require finding units that are either older or located in less desirable areas within the ZIP code. 2. **Seek Additional Subsidies**: Given the high actual rents, investors might want to explore other subsidy programs or partnerships that can help bridge the gap between the FMR and the actual rent. This could include state-level subsidies, local government incentives, or private funding sources that support affordable housing initiatives. 3. **Consider Mixed-Income Developments**: Developing or investing in mixed-income housing projects can provide a balance between affordability and profitability. By offering a mix of units at different price points, including some at or below the FMR, investors can cater to both Section 8 voucher holders and other renters willing to pay higher rates. This strategy can help stabilize cash flow and improve the overall appeal of the property. #### Bottom Line For Section 8-focused investors, the ZIP code 95757 presents a challenging environment due to the significant disparity between the FMR and actual rents. The high cost of living and limited availability of units within the FMR range suggest that this area is not ideal for investments relying solely on Section 8 vouchers. Therefore, the recommendation is to **Skip** this ZIP code unless you can secure additional subsidies or develop a mixed-income approach that balances affordability with profitability.

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.