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 | $1,840 |
| 1 Bedroom | $1,890 |
| 2 Bedrooms | $2,320 |
| 3 Bedrooms | $3,040 |
| 4 Bedrooms | $3,510 |
| 5 Bedrooms | $4,072 |
| 6 Bedrooms | $4,561 |
| 7 Bedrooms | $4,926 |
| 8 Bedrooms | $5,172 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,890 | $588,209 | 0.32% | F |
| 2BR | $2,320 | $785,618 | 0.3% | F |
| 3BR | $3,040 | $1,169,094 | 0.26% | F |
| 4BR | $3,510 | $1,663,897 | 0.21% | F |
| 5BR | $4,072 | $2,431,237 | 0.17% | F |
U.S. Census Bureau data (2024)
The ZIP code 96145, located in Tahoe City, CA, presents an interesting case for real estate investment when considering both yield and stability. The Fair Market Rent (FMR) for the area in fiscal year 2024 is set at $1,880. This figure represents the median gross rent for a standard-quality rental unit, which is lower than the market rent of $2,343. However, the median home value stands at $1,237,333, indicating a high-cost housing market.
When it comes to yield, the disparity between the FMR and the market rent suggests potential for higher returns if properties can be leased at market rates. Investors should aim to price their rentals closer to the $2,343 mark to maximize profitability. The significant difference between the FMR and market rent also implies that the area is not heavily subsidized, meaning landlords could see above-average yields compared to other regions where rents are closer to the FMR.
On the stability axis, Tahoe City has a relatively low percentage of renters at 25.4%. This indicates that a majority of residents are homeowners, which can contribute to a more stable housing market. The average household income is quite robust at $112,875, suggesting that tenants have the financial capability to meet market rent levels. While the number of days on market (DOM) is not available, the strong income figures imply that vacancies might be shorter, contributing to overall stability.
Given these factors, ZIP 96145 does not fit the profile of a high-yield/low-stability 'flip-style' market. Instead, it leans towards being a steady-cashflow zone due to the high average incomes supporting consistent rental payments. However, the potential for higher yields through market-rate leasing means it is not purely stable but offers a blend of both yield and stability. Investors should focus on pricing strategies and tenant screening to leverage the market's strengths while mitigating risks associated with the lower rental rate penetration.
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.