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 | $1,540 |
| 1 Bedroom | $1,580 |
| 2 Bedrooms | $1,940 |
| 3 Bedrooms | $2,540 |
| 4 Bedrooms | $2,930 |
| 5 Bedrooms | $3,399 |
| 6 Bedrooms | $3,807 |
| 7 Bedrooms | $4,112 |
| 8 Bedrooms | $4,318 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,580 | $306,154 | 0.52% | F |
| 2BR | $1,940 | $373,001 | 0.52% | F |
| 3BR | $2,540 | $405,874 | 0.63% | D |
| 4BR | $2,930 | $441,161 | 0.66% | D |
| 5BR | $3,399 | $493,156 | 0.69% | D |
U.S. Census Bureau data (2024)
The ZIP code 95820 in Sacramento, CA, presents an interesting scenario when analyzed from a renter's perspective. The median income for a household in this area is $78,436, which translates into a monthly income of approximately $6,536. Given the market rate rent of $2,225 (ZORI), it would consume roughly 34% of the average household's monthly income. This is significantly higher than the recommended guideline of spending no more than 30% of income on housing.
In contrast, the Fair Market Rent (FMR) for the zip code in fiscal year 2024 stands at $1,820. This means that a household receiving a Section 8 voucher could afford rent that is $405 lower than the market rate. For a family living on a fixed income, this difference is substantial and can make the ZIP code more accessible to those seeking affordable housing.
With 41.2% of the 35,410 population being renters, there is a notable demand for rental properties. However, the affordability gap between the market rate ($2,225) and the voucher payment standard ($1,820) suggests that many households may struggle to find suitable housing without financial assistance. This gap impacts the competition among landlords, as those who accept vouchers may attract tenants who otherwise cannot afford the market rates.
The takeaway for landlords considering their strategy in ZIP 95820 is clear: accepting Section 8 vouchers can open up a larger pool of potential tenants, especially given the significant disparity between market rates and the voucher payment standards. While the voucher payment might be slightly lower than the market rate, it ensures a steady stream of tenants who can reliably pay rent, thereby reducing vacancy rates and turnover costs. Landlords should weigh the benefits of voucher stability against the flexibility of cash-paying tenants who might be willing to pay higher 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.