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 | $1,570 |
| 1 Bedroom | $1,620 |
| 2 Bedrooms | $1,990 |
| 3 Bedrooms | $2,610 |
| 4 Bedrooms | $3,010 |
| 5 Bedrooms | $3,492 |
| 6 Bedrooms | $3,911 |
| 7 Bedrooms | $4,224 |
| 8 Bedrooms | $4,435 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,990 | $341,696 | 0.58% | F |
| 3BR | $2,610 | $436,728 | 0.6% | F |
| 4BR | $3,010 | $485,702 | 0.62% | D |
| 5BR | $3,492 | $583,381 | 0.6% | F |
U.S. Census Bureau data (2024)
Sacramento’s 95828 ZIP code, often identified as the Valley Hi neighborhood, is characterized by a suburban feel with a high density of single-family homes and apartment complexes. The area is largely defined by its proximity to major retail corridors and essential services, providing residents with convenient access to daily necessities. A key institutional presence here is the Elk Grove Unified School District, which serves a significant portion of this community and is a major driver for family housing demand.
From a financial perspective, the HUD Fair Market Rent (FMR) for a 2-bedroom unit is set at $2,100 in FY2026, while the prevailing market rent (Zillow ZORI) sits significantly higher at $2,388, creating a cash flow gap of $288. Investors looking at entry costs will find a median home value of $455,095, with 2-bedroom properties specifically trading at a median of $345,268. Inventory moves quickly here, with a median days on market of just 19 days, indicating competitive buyer interest despite the rent spread.
The local tenant pool is supported by a median household income of $81,778 and a renter share of 35.9%. While income levels are moderate, the high cost of market rents pushes a significant portion of the population toward affordability programs. Families often prioritize this area due to specific school ratings within the district and the relative availability of multi-family housing stock compared to more expensive northern Sacramento suburbs.
The Section 8 verdict for 95828 leans toward stability over immediate yield. Because the HUD payment standard lags behind the market rate by $288, investors relying solely on vouchers may leave money on the table compared to unassisted tenants. However, the low median days on market and the presence of a major school district suggest that owning property here offers solid appreciation potential and consistent occupancy, making it a safer long-term hold rather than a high-cashflow play.
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.