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 | $2,060 |
| 1 Bedroom | $2,160 |
| 2 Bedrooms | $2,650 |
| 3 Bedrooms | $3,520 |
| 4 Bedrooms | $4,060 |
| 5 Bedrooms | $4,710 |
| 6 Bedrooms | $5,275 |
| 7 Bedrooms | $5,697 |
| 8 Bedrooms | $5,982 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,160 | $597,052 | 0.36% | F |
| 2BR | $2,650 | $929,224 | 0.29% | F |
| 3BR | $3,520 | $1,252,615 | 0.28% | F |
| 4BR | $4,060 | $1,826,401 | 0.22% | F |
| 5BR | $4,710 | $2,270,065 | 0.21% | F |
U.S. Census Bureau data (2024)
If a landlord is considering buying a property in ZIP code 96146 (Olympic Valley, CA) for Section 8 purposes, they must evaluate several key factors to make an informed decision. The following decision tree outlines the critical steps:
Step 1: Does the Fair Market Rent (FMR) of $2310 cover the debt service on a property valued at $1,004,758?
No. The FMR of $2310 per month does not sufficiently cover the debt service on a property costing $1,004,758. Debt service typically includes mortgage payments, property taxes, insurance, and maintenance costs. For such a high-priced property, the monthly expenses would likely exceed the FMR, making it unprofitable to rely solely on Section 8 tenants.
It Depends. If the landlord already owns the property and has minimal debt service, then the FMR might be adequate. However, if the property is newly acquired, the answer is a definitive no due to the high cost and low FMR.
Step 2: Is the market rent above, at, or below the FMR?
N/A. There is insufficient data available to determine the market rent in Olympic Valley, CA. This lack of information makes it challenging to assess whether the FMR aligns with local rental prices. Landlords should conduct further research to understand the local rental market dynamics before proceeding.
Step 3: Are there enough renters and days on the market (DOM) to ensure demand?
Yes. With 24.2% of residents being renters, there is a notable demand for rental properties. However, the DOM figure is not available, which means we cannot assess how quickly rental units are occupied. Despite this gap, the percentage of renters suggests that there is a reasonable market presence for potential Section 8 tenants.
It Depends. Although 24.2% of residents are renters, the absence of DOM data leaves uncertainty about the speed of unit occupancy. Additionally, landlords need to consider the competition in the rental market and the availability of Section 8 vouchers in the area. Without knowing these specifics, the decision to invest remains conditional.
In summary, based on the provided data, landlords should be cautious about investing in ZIP 96146 for Section 8 properties due to the high property value relative to the FMR. The lack of market rent and DOM data adds another layer of uncertainty. Further investigation into local rental market conditions and voucher availability is recommended before making a final decision.
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.