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: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,990 | $257,246 | 0.77% | D |
| 3BR | $2,610 | $428,513 | 0.61% | D |
| 4BR | $3,010 | $461,027 | 0.65% | D |
| 5BR | $3,492 | $519,579 | 0.67% | D |
U.S. Census Bureau data (2024)
Sacramento, CA's ZIP 95842, part of the Sacramento--Roseville--Arden-Arcade HUD Metro FMR Area, serves well as a cash-flow anchor within a Section 8 portfolio strategy. The Fair Market Rent (FMR) for ZIP 95842 in fiscal year 2024 is set at $1890, closely matching the market rate of $1903. This alignment ensures that rental properties in this area will generate consistent cash flow, as landlords can charge close to the market rate while still being within the bounds of the Section 8 program.
The median home value in ZIP 95842 stands at $423,920. While this figure might suggest opportunities for capital appreciation, the low 0.2% price-cut share and 15-day days on market (DOM) indicate a stable market rather than one experiencing rapid growth. In other words, while property values are unlikely to plummet, they are also not expected to surge significantly.
ZIP 95842 is not primarily an appreciation play but a cash-flow anchor due to the narrow spread between the FMR and the market rate. Landlords can rely on steady rental income without the risk of significant fluctuations in property values. The diversification aspect comes into play with the 49.5% renter share, which means that nearly half of the residents are renters, providing a robust demand for rental properties. Additionally, the median income of $68,276 suggests that tenants have sufficient financial stability to support their rental obligations.
In summary, ZIP 95842 should be considered a cash-flow anchor in a Section 8 portfolio strategy. The close alignment of FMR and market rates, combined with a stable housing market and a substantial renter population, makes it an ideal location for generating reliable income. The median income level further supports the likelihood of timely rent payments, reducing the risk of vacancies or delinquencies.
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.