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 | $1,770 |
| 1 Bedroom | $1,830 |
| 2 Bedrooms | $2,240 |
| 3 Bedrooms | $2,940 |
| 4 Bedrooms | $3,390 |
| 5 Bedrooms | $3,932 |
| 6 Bedrooms | $4,404 |
| 7 Bedrooms | $4,756 |
| 8 Bedrooms | $4,994 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,830 | $188,719 | 0.97% | C |
| 2BR | $2,240 | $339,083 | 0.66% | D |
| 3BR | $2,940 | $464,181 | 0.63% | D |
| 4BR | $3,390 | $517,400 | 0.66% | D |
U.S. Census Bureau data (2024)
The rent math in ZIP 95825, located within the Sacramento--Roseville--Arden-Arcade, CA HUD Metro FMR Area, does not align perfectly but offers a reasonable opportunity. The Fair Market Rent (FMR) set at $1940 for FY 2024 contrasts with the actual market rent, known as ZORI, which stands at $1,713. This indicates that while the government benchmark is higher, landlords can still charge above market rates and remain competitive.
Regarding acquisition affordability, the median home value of $399,876 is a key figure. With an average of 41 days on the market (DOM), it suggests that homes sell relatively quickly, indicating a healthy turnover rate for potential investments. Furthermore, the low price-cut share of just 0.2% implies that homes are typically sold close to their asking price, making the area attractive for acquiring properties at fair market values.
Tenant demand is robust in ZIP 95825, with a total population of 36,156 and a significant 75.0% renter share. This high percentage of renters ensures a consistent pool of potential tenants, reducing the risk of vacancy and providing steady rental income.
In summary, ZIP 95825 presents a viable investment opportunity for landlords and small-portfolio investors. While the rent math shows a discrepancy between FMR and market rent, the latter remains within a reasonable range. Acquisition is affordable due to quick sales and minimal price reductions, and tenant demand is strong with a large proportion of renters. These factors collectively support a positive outlook for real estate investments in this area.
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.