Section 8 Fair Market Rent (FMR) for ZIP 95833 - 2027

Investment Score for ZIP 95833

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,900
1 Bedroom	$1,960
2 Bedrooms	$2,400
3 Bedrooms	$3,150
4 Bedrooms	$3,630
5 Bedrooms	$4,211
6 Bedrooms	$4,716
7 Bedrooms	$5,093
8 Bedrooms	$5,348

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$2,400	$370,298	0.65%	D
3BR	$3,150	$447,415	0.7%	D
4BR	$3,630	$499,134	0.73%	D
5BR	$4,211	$557,626	0.76%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 95833 (Sacramento, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 95833 is set by HUD for 2026. For a two-bedroom unit, the FMR is $2480, which represents 30.4% of the median household income in the area ($97,792). This suggests that voucher holders have limited options when it comes to finding affordable housing. The actual rental market, however, is much higher. According to Zillow, the median price for a two-bedroom home is $376,808, which translates to a monthly rent of approximately $1,570 based on typical mortgage payments (assuming a 4.5% interest rate and a 20% down payment). However, the price-to-FMR ratio of 12.7x indicates that actual rental rates are significantly above the FMR. A two-bedroom unit renting at the Zillow median price would cost around $3,140 per month, far exceeding the $2480 FMR. This means that voucher holders are constrained to a small subset of the rental market, likely older units or properties that are less desirable but still within the FMR range. #### Affordability & Renter Profile ZIP code 95833 has a high renter percentage of 48.8%, indicating a significant portion of the population relies on rental housing. With a median household income of $97,792, the affordability of housing is a critical issue. The occupancy rate of 93.1% suggests that the market is relatively tight, with most available units being occupied. Given that the FMR for a two-bedroom unit is only 30.4% of the median income, it is clear that the majority of residents can afford to live outside the FMR range. However, those who depend on Section 8 vouchers face a challenging situation due to the high actual rental prices. The gap between the FMR and the actual rental market makes it difficult for lower-income renters to find suitable housing without assistance. #### Investor Angle From an investor perspective, the ZIP code 95833 presents both opportunities and challenges. The actual rental market is significantly higher than the FMR, which means that landlords can potentially earn higher returns by renting to non-voucher holders. However, for investors focusing specifically on Section 8 vouchers, the cash flow is likely to be negative unless they can acquire properties at a discount or manage costs effectively. The Zillow median price for a two-bedroom home is $376,808, which translates to a monthly mortgage payment of about $1,570. Adding property taxes, insurance, maintenance, and other expenses, the total cost could easily exceed the FMR of $2480. Therefore, the investment grade for Section 8-focused properties in this ZIP code is low, as the potential for positive cash flow is minimal. #### Specific Actionable Insights 1. **Target Older Properties**: Investors should focus on acquiring older properties that are more likely to be rented within the FMR range. These units might be less desirable but still meet the needs of voucher holders. For example, a two-bedroom unit renting at $2480 would be within the FMR limit but might struggle to compete with newer, more expensive units. 2. **Consider Cost Reduction Strategies**: To make Section 8 investments viable, investors need to reduce operational costs. This could include lowering property taxes through tax appeals, minimizing maintenance costs by choosing well-maintained older properties, and leveraging economies of scale by managing multiple units in the same building or complex. 3. **Diversify Tenant Base**: While targeting Section 8 voucher holders, investors should also consider diversifying their tenant base to include non-voucher holders who can pay higher rents. This mixed approach can help balance the overall cash flow and reduce reliance on FMR limits. #### Bottom Line Given the high actual rental prices compared to the FMR, ZIP code 95833 is not a favorable market for Section 8-focused investors seeking positive cash flow. The recommendation for investors is to **Skip** this ZIP code if their primary goal is to generate cash flow from Section 8 properties. Instead, they should look for areas where the FMR is closer to the actual rental market or where there is a higher concentration of lower-income households who rely on vouchers. Alternatively, investors could consider a diversified strategy that includes both Section 8 and market-rate tenants to mitigate financial risks. In summary, while ZIP 95833 offers a robust rental market, it is not conducive to positive cash flow for Section 8-focused investments due to the substantial gap between FMR and actual rental prices.

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.