Section 8 Fair Market Rent (FMR) for ZIP 95843 - 2027

Investment Score for ZIP 95843

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	$2,070
1 Bedroom	$2,130
2 Bedrooms	$2,610
3 Bedrooms	$3,420
4 Bedrooms	$3,950
5 Bedrooms	$4,582
6 Bedrooms	$5,132
7 Bedrooms	$5,543
8 Bedrooms	$5,820

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	$2,610	$331,467	0.79%	D
3BR	$3,420	$472,675	0.72%	D
4BR	$3,950	$541,951	0.73%	D
5BR	$4,582	$635,708	0.72%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Market Analysis for ZIP Code 95843 (Antelope, CA) Introduction: ZIP code 95843, located in Antelope, California, is situated within Sacramento County. This area has a population of 47,695, with a median household income of $98,274. The renter percentage is 30.5%, and the occupancy rate stands at 98.3%. The Fair Market Rent (FMR) for 2026 is set at $2,680 for a two-bedroom unit, which represents 32.7% of the median income. The Zillow median price for a two-bedroom home is $336,155, indicating a price-to-FMR ratio of 10.5x. This analysis will focus on the dynamics of Section 8 vouchers, affordability and renter profiles, investor angles, actionable insights, and a bottom line recommendation. 1. Section 8 Voucher Dynamics: The Fair Market Rent (FMR) values for 2026 in Antelope, CA, are as follows: - 0BR: $2,080 - 1BR: $2,180 - 2BR: $2,680 - 3BR: $3,570 - 4BR: $4,110 These FMRs represent the maximum amount that a Section 8 voucher holder can pay towards their rent. For instance, a voucher holder seeking a two-bedroom apartment would be limited to paying up to $2,680 per month. However, the actual rental market may have higher rates, leading to potential challenges for voucher holders in finding affordable housing within the FMR limits. 2. Affordability & Renter Profile: Given the median household income of $98,274, the FMR for a two-bedroom unit ($2,680) is relatively affordable, representing only 32.7% of the median income. This suggests that the majority of residents in Antelope can afford to live in two-bedroom units without assistance. However, the 30.5% renter population indicates a significant portion of the community relies on rental housing, and the high occupancy rate of 98.3% suggests a tight market with little excess supply. The median price of a two-bedroom home on Zillow is $336,155, which is significantly higher than the FMR. This large gap between the Zillow median price and the FMR implies that the rental market is highly competitive, and landlords might prefer to sell rather than rent out their properties due to the favorable price-to-rent ratio. Consequently, the demand for rental properties could outstrip supply, making it difficult for renters, especially those relying on Section 8 vouchers, to find suitable housing. 3. Investor Angle: For investors focusing on Section 8 properties, the cash flow potential must be evaluated against the FMR. Given the FMR for a two-bedroom unit is $2,680, investors should consider whether they can achieve positive cash flow at these rates. To determine this, we need to look at the typical costs associated with owning and managing a rental property. Assuming a purchase price of $336,155 for a two-bedroom property, the monthly mortgage payment (using a 30-year fixed-rate mortgage at 5%) would be approximately $1,750. Adding in other expenses such as property taxes, insurance, maintenance, and management fees, the total monthly cost could range from $2,200 to $2,500. At the FMR of $2,680, the cash flow would be modest but positive, ranging from $180 to $480 per month. However, the investment grade depends on several factors, including the stability of the local economy, the demand for rental properties, and the competition from homeownership. With a median income of $98,274 and a high occupancy rate, the risk of vacancy is low, which is beneficial for investors. Additionally, the tight rental market supports the idea that there is a strong demand for rental properties, even if the cash flow is not exceptionally high. 4. Specific Actionable Insights: - **Focus on Smaller Units**: Given the FMR constraints, investors should prioritize smaller units like one-bedroom or studio apartments where the FMR is lower ($2,180 and $2,080 respectively). These units are more likely to be fully occupied by Section 8 voucher holders. - **Consider Multi-Family Properties**: Multi-family properties can offer better economies of scale and potentially higher overall cash flow. Investors should evaluate the feasibility of converting single-family homes into multi-family units or purchasing existing multi-family buildings. - **Engage with Local Housing Authorities**: Building relationships with local housing authorities can provide access to more Section 8 voucher holders and streamline the leasing process. This can help ensure consistent occupancy and reduce vacancy rates. 5. Bottom Line: Based on the analysis, the recommendation for Section 8-focused investors in ZIP code 95843 is to **Buy**. While the cash flow may not be extremely high, the stable economic environment, high occupancy rates, and strong demand for rental properties make this a viable investment opportunity. By focusing on smaller units and multi-family properties, investors can maximize their returns while providing much-needed affordable housing options to residents. In conclusion, Antelope, CA, presents a balanced market for Section 8 investments. The combination of a robust local economy, high occupancy rates, and a significant renter population makes it a promising area for investors looking to capitalize on the demand for affordable housing.

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.