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 |
|---|---|---|---|---|
| 2BR | $1,940 | $391,786 | 0.5% | F |
| 3BR | $2,540 | $491,845 | 0.52% | F |
| 4BR | $2,930 | $589,195 | 0.5% | F |
| 5BR | $3,399 | $671,152 | 0.51% | F |
U.S. Census Bureau data (2024)
The ZIP code 95821 in Sacramento, CA, presents a dynamic rental market that is currently balanced but leans towards a slight surplus of demand over supply. This inference is drawn from the snapshot of the Fair Market Rent (FMR) set at $1800 for the fiscal year 2024, which exceeds the actual market rent as measured by ZORI, currently at $1,622. The FMR is established by HUD to reflect the economic realities of the area, and when it surpasses the market rent, it suggests that the rental market is somewhat robust, with tenants willing to pay up to the FMR threshold.
A further indication of this market's balance is the low 0.3% price-cut share among rental listings. This figure is quite minimal, suggesting that landlords are not frequently needing to reduce their asking rents to attract tenants, a scenario that would typically occur if there were an excess of supply over demand. Additionally, the 19-day DOM (Days on Market) for rental properties indicates that units are being rented relatively quickly, without significant periods of vacancy.
The median home value in ZIP 95821 stands at $498,678. While this metric primarily pertains to the homeownership segment, it can indirectly influence the rental market. Higher home values can make homeownership less accessible, thereby increasing the reliance on rental housing, especially among first-time buyers and those who cannot afford to purchase a home outright.
The 51.5% renter share in the area is a critical factor. With more than half of the residents renting rather than owning their homes, there is a sustained and significant demand for rental housing. This high percentage of renters points to long-term housing pressure, as the rental market must continually accommodate new tenants and replace those who might move into homeownership or relocate. Such a high renter share also suggests that the local economy supports a diverse mix of employment opportunities, attracting both young professionals and families who prefer the flexibility of renting.
In summary, ZIP 95821 exhibits a rental market where demand is strong enough to keep rental turnover brisk and asking rents close to the FMR benchmark. The high renter share underscores a consistent need for rental housing, indicating a stable and potentially growing market for landlords and small-portfolio investors.
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.