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 | $1,770 |
| 1 Bedroom | $1,830 |
| 2 Bedrooms | $2,240 |
| 3 Bedrooms | $2,940 |
| 4 Bedrooms | $3,390 |
| 5 Bedrooms | $3,932 |
| 6 Bedrooms | $4,404 |
| 7 Bedrooms | $4,756 |
| 8 Bedrooms | $4,994 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,240 | $426,370 | 0.53% | F |
| 3BR | $2,940 | $600,443 | 0.49% | F |
| 4BR | $3,390 | $1,077,482 | 0.31% | F |
| 5BR | $3,932 | $1,534,355 | 0.26% | F |
U.S. Census Bureau data (2024)
The ZIP code 95864 in Sacramento, CA, has a population of 25,500 residents, with 24.9% of them being renters. This indicates that while there is a significant portion of the population renting, it is not overwhelmingly dominated by renters. The median household income in this area stands at $127,953, which places it above the national average and suggests a relatively affluent community.
The market rent for the area is reported at $2,332 per month. To understand how this fits into the local economy, we can calculate that the typical rent consumes approximately 18.2% of the median household income ($2,332 / $127,953 * 100 = 18.2%). This percentage shows that the cost of rent is manageable for most households, given their income levels.
The Fair Market Rent (FMR) for ZIP 95864, as set by HUD for FY 2024, is $2,210. This figure is slightly below the market rent, indicating that landlords might need to consider the balance between market rates and the amount subsidized by Section 8 vouchers. The difference between the market rent and the FMR suggests that landlords could see a moderate level of voucher usage among tenants, but it is not likely to be the dominant source of rental income in this area.
Given the demographics and economic conditions of ZIP 95864, landlords should anticipate a mix of tenants. Some will be traditional renters who pay out-of-pocket, while others may use Section 8 vouchers to cover part of their rent. However, due to the higher median income and the fact that only about a quarter of the population rents, the demand for deep voucher subsidies is not as pronounced as it might be in areas with lower incomes and higher percentages of renters.
In summary, ZIP 95864 offers a balanced environment for landlords and small-portfolio investors. While the rent-to-income ratio is reasonable, the relatively high median income means that landlords can expect a diverse tenant pool, with some tenants using vouchers to supplement their rent payments. However, the overall demand for vouchers is not expected to be very high compared to other areas with lower median incomes and higher percentages of renters.
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.