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 | $1,870 |
| 2 Bedrooms | $2,360 |
| 3 Bedrooms | $3,170 |
| 4 Bedrooms | $3,730 |
| 5 Bedrooms | $4,327 |
| 6 Bedrooms | $4,846 |
| 7 Bedrooms | $5,234 |
| 8 Bedrooms | $5,496 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,870 | $604,619 | 0.31% | F |
| 2BR | $2,360 | $798,776 | 0.3% | F |
| 3BR | $3,170 | $1,045,655 | 0.3% | F |
| 4BR | $3,730 | $1,408,178 | 0.26% | F |
| 5BR | $4,327 | $2,415,028 | 0.18% | F |
U.S. Census Bureau data (2024)
The ZIP code 96140, located in Carnelian Bay, CA, within the Sacramento--Roseville--Arden-Arcade, CA HUD Metro FMR Area, is best suited as a cash-flow anchor in a Section 8 portfolio strategy. This classification is based on the significant spread between the Fair Market Rent (FMR) and the market rent.
In fiscal year 2024, the FMR for ZIP 96140 is set at $2230, which is notably higher than the market rent of $1397. This discrepancy indicates that properties in this area can be rented out at rates above the market average through the Section 8 program, providing a solid cash flow advantage. The median home value in the area is $1,102,766, suggesting that it is a relatively affluent neighborhood, which supports the idea of higher rental rates being acceptable.
The high FMR compared to the market rent makes this ZIP an attractive option for landlords and small-portfolio investors looking to stabilize their cash flow. Properties here can generate steady income without the need for frequent price adjustments or tenant turnover. While the appreciation potential is less clear due to the lack of specific data on price-cut shares and days on market (DOM), the strong cash flow characteristics make it a reliable choice for those prioritizing consistent returns over speculative growth.
Additionally, with a 13.8% renter share and a median income of $181,875, the area has a mix of homeowners and renters, indicating a stable demand for rentals. However, the primary focus for a Section 8 strategy in ZIP 96140 should be on leveraging the cash-flow benefits rather than the diversification aspect, given the limited information on property appreciation.
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.