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 | $1,850 |
| 1 Bedroom | $1,910 |
| 2 Bedrooms | $2,340 |
| 3 Bedrooms | $3,070 |
| 4 Bedrooms | $3,540 |
| 5 Bedrooms | $4,106 |
| 6 Bedrooms | $4,599 |
| 7 Bedrooms | $4,967 |
| 8 Bedrooms | $5,215 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,910 | $524,010 | 0.36% | F |
| 2BR | $2,340 | $507,038 | 0.46% | F |
| 3BR | $3,070 | $662,912 | 0.46% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP 95811 (Sacramento, CA) does not fully align with the Federal Market Rent (FMR) set by HUD for the Sacramento--Roseville--Arden-Arcade metro area. For fiscal year 2024, the FMR is set at $2190, which is notably higher than the current market rent indicated by ZORI, which stands at $1916. This discrepancy suggests that landlords may struggle to justify rents at the FMR level based on current market conditions.
Regarding property acquisition, the median home value of $592,793 makes it a relatively expensive market. However, the lack of available data on days on market (DOM) and the percentage of homes requiring price cuts indicates stability in the housing market. Without these specifics, it's challenging to determine if the acquisition costs are justified by the potential rental income. Given the high median home value, prospective investors should carefully assess their financial capacity and the expected ROI.
Tenant demand in ZIP 95811 is robust, with a total population of 8,810 and a significant 81.1% of residents being renters. This high percentage of renters points towards a strong demand for rental properties, suggesting that once acquired, properties are likely to find tenants readily.
In summary, while the rent math doesn't perfectly match up due to the higher FMR compared to the actual market rent, the high renter share ensures a steady demand for rental properties. The median home value suggests that acquisitions will be costly, so investors must consider the long-term benefits against the initial investment. Despite the challenges in justifying rents at the FMR level, the presence of a large number of renters supports the viability of investing in this ZIP code, provided investors can secure competitive rental rates and manage their expectations regarding immediate returns.
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.