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 | $2,170 |
| 1 Bedroom | $2,230 |
| 2 Bedrooms | $2,740 |
| 3 Bedrooms | $3,590 |
| 4 Bedrooms | $4,140 |
| 5 Bedrooms | $4,802 |
| 6 Bedrooms | $5,378 |
| 7 Bedrooms | $5,808 |
| 8 Bedrooms | $6,098 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,740 | $425,751 | 0.64% | D |
| 3BR | $3,590 | $525,123 | 0.68% | D |
| 4BR | $4,140 | $610,417 | 0.68% | D |
| 5BR | $4,802 | $714,802 | 0.67% | D |
U.S. Census Bureau data (2024)
Elk Grove’s 95758 zip code represents a family-heavy suburban landscape characterized by master-planned communities and abundant open space. The area is largely residential with a focus on quality of life, offering residents access to extensive park systems and a quiet atmosphere distinct from the urban core. A major institutional presence shaping the local economy and providing stable employment is the Elk Grove Unified School District, one of the largest districts in California, which serves as a significant anchor for the community.
From a financial standpoint, the numbers reveal a challenging spread for voucher landlords. The HUD Fair Market Rent (FMR) for a 2-bedroom unit in FY2024 is set at $2,140, while current market rents (Zillow ZORI) sit significantly higher at $2,520. This creates a negative gap of $380 per month if you cap rents at the HUD payment standard. The market value for a mid-tier home is $578,200, with a specific median 2BR sale price of $433,235, indicating high asset demand that turns over quickly with a median of only 18 days on market.
Despite the tight rent spread, the underlying tenant fundamentals are robust. The area boasts a high median household income of $117,017, suggesting financial stability even among the 30.3% of residents who rent. Families are drawn here not just by housing, but by the Elk Grove Unified School District, which features several highly rated elementary and high schools, ensuring consistent demand from voucher holders prioritizing education.
The Section 8 verdict for 95758 leans heavily toward stability and appreciation over immediate cash flow. With market rents outpacing HUD SAFMRs by $380, strictly relying on voucher payments will likely result in negative cash flow on conventional financing. However, the rapid 18-day turnover rate and high home values suggest strong appreciation potential. Investors should treat the voucher program as a vacancy-reduction tool in an appreciating asset class rather than a primary source of above-market income.
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.