Section 8 Fair Market Rent (FMR) for ZIP 95762 - 2027

Investment Score for ZIP 95762

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	$2,560
2 Bedrooms	$3,140
3 Bedrooms	$4,120
4 Bedrooms	$4,750
5 Bedrooms	$5,510
6 Bedrooms	$6,171
7 Bedrooms	$6,665
8 Bedrooms	$6,998

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$3,140	$632,203	0.5%	F
3BR	$4,120	$769,484	0.54%	F
4BR	$4,750	$943,739	0.5%	F
5BR	$5,510	$1,186,242	0.46%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 95762 (El Dorado Hills, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 95762, as per the 2026 data, is set at $3210 for a two-bedroom unit. However, the Zillow median price for a two-bedroom rental property in this area is significantly higher at $641,908, which translates to a price-to-FMR ratio of approximately 16.7 times. This means that the actual rent prices are much higher than the FMR, making it challenging for Section 8 voucher holders to find suitable housing. The FMR represents only 23.3% of the median household income in the area, indicating that even the FMR is relatively high compared to the average income levels. Therefore, voucher holders are likely constrained by the limited availability of units that fall within their budget, especially since the occupancy rate is 96.6%, suggesting a very tight rental market. #### Affordability & Renter Profile ZIP code 95762 has a median household income of $165,467, which is quite high. Given that the renter population constitutes only 13.2% of the total population, it is clear that this area is predominantly owner-occupied. The high median income suggests that renters who can afford to live here are likely to be professionals or individuals with substantial financial resources. With the occupancy rate being so high, the rental market is extremely competitive, and landlords have little incentive to lower rents. Consequently, the tight market conditions make it difficult for low-income renters, including those with Section 8 vouchers, to secure housing. The median rent for a two-bedroom unit is far above the FMR, further highlighting the affordability challenges faced by lower-income households. #### Investor Angle From an investor perspective, the ZIP code 95762 presents a mixed picture. While the FMRs are relatively high, they are still substantially below the actual market rents. For instance, the FMR for a two-bedroom unit is $3210, whereas the median market rent is $641,908. This discrepancy suggests that properties rented at FMR would likely generate negative cash flow, given the high costs associated with maintaining and managing properties in such a high-cost area. Additionally, the high price-to-FMR ratio indicates that the market is overvalued relative to the FMR, which could pose risks for investors relying solely on FMR-based rents. The investment grade for this ZIP code would be considered low due to the significant gap between FMR and market rents, coupled with the limited number of potential tenants who can use Section 8 vouchers. #### Specific Actionable Insights 1. **Target High-Income Renters**: Given the high median income and the tight rental market, investors should focus on targeting high-income renters rather than relying on Section 8 vouchers. This strategy would ensure better cash flow and potentially higher returns on investment. 2. **Consider Short-Term Rentals**: Due to the high occupancy rate and limited availability of long-term rentals, short-term rentals might present a more lucrative opportunity. Investors could consider converting properties into vacation rentals or Airbnbs, which often command higher rates than traditional long-term rentals. 3. **Develop Properties for Owner-Occupants**: Since the majority of the population (86.8%) owns their homes, developing properties for owner-occupants might be a more viable option. This could include building new homes or renovating existing ones to sell directly to the local high-income demographic. #### Bottom Line For Section 8-focused investors, the ZIP code 95762 (El Dorado Hills, CA) is not recommended. The high market rents and limited availability of units that fall within the FMR range make it challenging to achieve positive cash flow. The tight rental market and high occupancy rate suggest that there is a strong preference for homeownership, and the high median income implies that most renters can afford market rates. Therefore, the recommendation is to **Skip** this ZIP code for Section 8 investments and instead explore other markets where the FMR is closer to the actual market rents.

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.