Section 8 Fair Market Rent (FMR) for ZIP 95813 - 2027
Location: Sacramento--Roseville--Arden-Arcade, CA | Metro: Sacramento--Roseville--Arden-Arcade, CA HUD Metro FMR Area
FY 2027 Fair Market Rent Rates
| Unit Size |
Monthly FMR |
| Studio | $1,720 |
| 1 Bedroom | $1,770 |
| 2 Bedrooms | $2,170 |
| 3 Bedrooms | $2,850 |
| 4 Bedrooms | $3,280 |
| 5 Bedrooms | $3,805 |
| 6 Bedrooms | $4,262 |
| 7 Bedrooms | $4,603 |
| 8 Bedrooms | $4,833 |
To determine if a landlord should buy in ZIP code 95813 for Section 8 purposes, follow these decision points:
- Does FMR $2030 (zip FY 2024) cover the debt service on a property?
- Yes: If the Fair Market Rent (FMR) of $2030 is sufficient to meet the monthly mortgage payment and other expenses, then purchasing a property in this area for Section 8 tenants is financially viable.
- No: If the FMR does not cover the debt service, acquiring a property in this area for Section 8 would result in a financial loss each month.
- Is the market rent above, at, or below FMR?
- Above FMR: If the average market rent exceeds $2030, landlords might find better returns by renting to non-Section 8 tenants. However, this does not consider potential tax benefits or subsidies that come with Section 8 participation.
- At FMR: If the market rent matches the FMR, landlords can expect to break even when renting to Section 8 tenants, assuming all other costs are accounted for.
- Below FMR: If the market rent is below $2030, Section 8 tenants could provide a more stable income compared to the local rental market.
- Are there enough renters and is the Days on Market (DOM) short enough to ensure demand?
- Sufficient renters and low DOM: If there is a high percentage of renters and properties are rented quickly (low DOM), there is strong demand for rentals in this area. This suggests that finding Section 8 tenants would be relatively easy.
- Limited renters or high DOM: If the percentage of renters is low or properties take a long time to rent, demand may be insufficient to justify a purchase based solely on Section 8 tenants. Landlords must weigh the risks of prolonged vacancy against the benefits of receiving guaranteed rent payments.
The final decision will depend on the landlord's financial situation, investment goals, and tolerance for risk. If the FMR covers debt service and demand is strong, then buying in ZIP 95813 for Section 8 is advisable. Otherwise, it depends on the landlord's willingness to accept lower returns or higher vacancy rates.
Data Sources: FMR data from HUD (2027).
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.