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 | $1,530 |
| 1 Bedroom | $1,570 |
| 2 Bedrooms | $1,930 |
| 3 Bedrooms | $2,530 |
| 4 Bedrooms | $2,920 |
| 5 Bedrooms | $3,387 |
| 6 Bedrooms | $3,793 |
| 7 Bedrooms | $4,096 |
| 8 Bedrooms | $4,301 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,930 | $298,438 | 0.65% | D |
| 3BR | $2,530 | $416,379 | 0.61% | D |
| 4BR | $2,920 | $453,223 | 0.64% | D |
| 5BR | $3,387 | $520,304 | 0.65% | D |
U.S. Census Bureau data (2024)
Sacramento’s 95823 zip code, often identified as the Valley Hi or Parkway neighborhoods, offers investors a high-density suburban environment characterized by a mix of mid-century single-story homes and multifamily complexes. The area is largely residential but benefits from its proximity to major employment hubs, with the UC Davis Medical Center serving as a significant regional institution located just a short drive north. Local development focus has increasingly shifted toward improving public amenities and transit connectivity along the Stockton Boulevard corridor, aiming to bolster neighborhood stability and attract long-term residents.
From a financial perspective, the data reveals a distinct spread between government subsidies and private market rates. The FY2024 HUD SAFMR for a 2-bedroom unit stands at $1,790, while the projected FY2026 Full FMR rises to $1,980. However, the current market rent (Zillow ZORI) sits significantly higher at $2,212, creating a negative gap of $422 against the 2026 standard. With a median home value of $428,722 and properties moving off the market in a median of 35 days, investors should note that standard voucher rates trail the open market, meaning pure cash flow is tighter here than in surrounding higher-rent districts.
Despite the rent gap, tenant demand remains robust due to the area’s demographic profile. With 52.4% of households renting and a median income of $66,895, there is a substantial pool of working-class families who may qualify for or require housing assistance. The neighborhood is served by the Elk Grove Unified School District, which includes several highly-rated elementary options, enhancing appeal for families. Additionally, the presence of light rail expansion plans and major retail centers on Stockton Boulevard supports consistent occupancy levels.
The Section 8 verdict for 95823 leans toward stability and appreciation rather than immediate maximum cash flow. The combination of a high renter share and quick 35-day days-on-market indicates strong turnover capability, even if the voucher payments lag behind Zillow metrics. Investors should view this zip code as a play for long-term asset growth aided by the $428,722 median value baseline, utilizing the reliable demand from the 52.4% renter population to maintain occupancy while banking on future market appreciation.
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.