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 | $1,730 |
| 1 Bedroom | $1,780 |
| 2 Bedrooms | $2,190 |
| 3 Bedrooms | $2,870 |
| 4 Bedrooms | $3,310 |
| 5 Bedrooms | $3,840 |
| 6 Bedrooms | $4,301 |
| 7 Bedrooms | $4,645 |
| 8 Bedrooms | $4,877 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,780 | $233,356 | 0.76% | D |
| 2BR | $2,190 | $418,318 | 0.52% | F |
| 3BR | $2,870 | $490,011 | 0.59% | F |
| 4BR | $3,310 | $576,203 | 0.57% | F |
| 5BR | $3,840 | $694,914 | 0.55% | F |
U.S. Census Bureau data (2024)
The ZIP code 95834 in Sacramento, California, presents an interesting scenario for both renters and landlords. The median household income in this area stands at $101,260, while the market rate for rent, known as ZORI (Zillow Observed Rent Index), is $2,228 per month. This means that the average renter in 95834 spends approximately 26.7% of their annual income on rent alone. To put this into perspective, a common rule of thumb is that housing costs should not exceed 30% of a household’s income.
Comparatively, the Fair Market Rent (FMR) for ZIP 95834 in fiscal year 2024 is set at $2,140. This figure represents the amount paid by Section 8 vouchers, which is slightly below the market rate. Therefore, voucher holders can find housing within their budget, spending around 25.6% of the median income on rent.
The area has a significant rental market, with 47.6% of the 36,245 residents being renters. This indicates a high demand for rental properties, which could be seen as beneficial for landlords. However, it also implies intense competition among landlords to attract tenants who can pay the market rate.
The affordability gap between the market rate ($2,228) and the FMR ($2,140) is $88 per month. For landlords, this difference can influence their decision-making process when choosing between accepting Section 8 vouchers and relying on cash-paying tenants. While cash-paying tenants might offer higher rents, they come with the risk of being less reliable due to economic pressures.
Landlords in 95834 must weigh the benefits of higher rent payments against the security and stability provided by Section 8 vouchers. Accepting vouchers ensures a steady stream of income with government backing, whereas cash-paying tenants offer the potential for higher revenue but require careful tenant screening to mitigate financial risks.
In conclusion, the rental market in ZIP 95834 is competitive, with a notable portion of the population renting. Landlords should consider the trade-offs between voucher and cash-paying tenants, taking into account the economic realities faced by local renters. A strategic mix of both types of tenants can provide a balanced approach to managing a property portfolio in this area.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.