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 | $1,730 |
| 1 Bedroom | $1,780 |
| 2 Bedrooms | $2,190 |
| 3 Bedrooms | $2,870 |
| 4 Bedrooms | $3,310 |
| 5 Bedrooms | $3,840 |
| 6 Bedrooms | $4,301 |
| 7 Bedrooms | $4,645 |
| 8 Bedrooms | $4,877 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,190 | $618,597 | 0.35% | F |
| 3BR | $2,870 | $880,697 | 0.33% | F |
| 4BR | $3,310 | $1,331,109 | 0.25% | F |
U.S. Census Bureau data (2024)
The Section 8 program in ZIP code 96142, located in Tahoma, CA, presents a significant opportunity for landlords and small-portfolio investors due to the substantial gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for ZIP 96142 in fiscal year 2024 is set at $2180, whereas the Zillow Observed Rental Index (ZORI) indicates that the market rent stands at $3400. This creates a gap of $1220, which represents approximately 35.8% of the market rent.
Given that the FMR is lower than the market rent, it's important to understand the implications for those who rely on housing vouchers. Voucher holders can only cover up to the FMR amount, meaning they must find ways to pay the additional $1220 to meet the actual market rent. In Tahoma, where 32.2% of residents are renters and the median income is $95,341, this gap can be challenging for many individuals and families.
The median home value in Tahoma, CA, is $887,226, indicating a relatively high-cost area. However, the disparity between the FMR and market rent means that landlords accepting Section 8 vouchers may need to consider the cost of maintaining properties below the open-market rates. While this can reduce immediate rental income, it also offers a stable and government-backed payment system, which can be beneficial in terms of long-term investment security and predictable cash flow.
To summarize, the $1220 difference between the FMR and the ZORI in ZIP 96142 translates into a 35.8% discount off the market rate. Landlords should weigh the benefits of guaranteed payments against the potential loss of higher market rents when deciding whether to participate in the Section 8 program. Given the economic context of Tahoma, with its high median home values and moderate median incomes, this decision will significantly impact both the landlord's yield and the ability of voucher recipients to secure 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.