Location: Sacramento--Roseville--Arden-Arcade, CA | Metro: Sacramento--Roseville--Arden-Arcade, CA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,720 |
| 1 Bedroom | $1,770 |
| 2 Bedrooms | $2,170 |
| 3 Bedrooms | $2,850 |
| 4 Bedrooms | $3,280 |
| 5 Bedrooms | $3,805 |
| 6 Bedrooms | $4,262 |
| 7 Bedrooms | $4,603 |
| 8 Bedrooms | $4,833 |
The ZIP code 95865 in California presents a unique challenge for both renters and landlords due to limited data on median income and rental market rates. However, focusing on the available information, we can analyze the situation from the renter's viewpoint.
Affordability is a critical concern for renters in 95865, especially given the lack of specific figures regarding median income and market rate rents. The Federal Market Rent (FMR) for the area, set at $2030 for fiscal year 2024, serves as a benchmark for housing assistance vouchers. This means that households receiving vouchers can secure housing up to this amount, which is crucial for those relying on federal support.
The absence of detailed local data makes it difficult to assess the exact affordability gap between market rates and the voucher standard. However, if we assume that the median income is below the national average, the FMR of $2030 could be a significant portion of monthly earnings, indicating that many residents might struggle to find suitable housing without assistance.
Landlords in 95865 face competition from properties that accept vouchers, particularly if the local rental market is tight. The voucher program ensures a steady stream of income, albeit at a fixed rate, which can be beneficial in an uncertain economic environment. On the other hand, relying on cash-paying tenants could potentially yield higher rents but also comes with greater risk and variability.
Takeaway: For landlords considering their strategy in ZIP 95865, accepting vouchers at the FMR of $2030 provides a reliable income source and taps into a segment of the market that may otherwise be unable to afford local rents. While cash-paying tenants might offer higher potential returns, the stability and guaranteed demand from voucher holders make them a valuable option, especially in areas where detailed economic data is scarce and market conditions are unclear.
Data Sources: FMR data from HUD (2027).
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.