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 | $1,350 |
| 1 Bedroom | $1,430 |
| 2 Bedrooms | $1,750 |
| 3 Bedrooms | $2,330 |
| 4 Bedrooms | $2,690 |
| 5 Bedrooms | $3,120 |
| 6 Bedrooms | $3,494 |
| 7 Bedrooms | $3,774 |
| 8 Bedrooms | $3,963 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,430 | $346,222 | 0.41% | F |
| 2BR | $1,750 | $705,593 | 0.25% | F |
| 3BR | $2,330 | $917,982 | 0.25% | F |
| 4BR | $2,690 | $1,242,412 | 0.22% | F |
U.S. Census Bureau data (2024)
To determine if a landlord should buy in ZIP 96148 (Tahoe Vista, CA) for Section 8 purposes, follow this decision tree:
1) Does the Fair Market Rent (FMR) of $2140 cover the debt service on an $860,538 property?
No. The FMR of $2140 is unlikely to clear the debt service on a property valued at $860,538. Debt service typically includes mortgage payments, property taxes, insurance, and maintenance costs. Given the high value of the property, these expenses would likely exceed the FMR amount, making it financially unfeasible to rely solely on Section 8 without additional income sources.
It depends. If the landlord can secure a low-interest loan or has significant equity in the property, it might be possible to manage the debt service with the FMR. However, this scenario is less common and requires careful financial planning.
2) Is the market rent above, at, or below the FMR of $2140?
Data indicates that market rent is N/A, suggesting there is insufficient information to make a comparison between market rent and FMR. This lack of data makes it challenging to assess the potential for renting to non-Section 8 tenants or the overall rental market dynamics.
3) Are 9.1% renters and N/A-day days on market (DOM) sufficient to meet demand?
No. With only 9.1% of the population being renters, the demand for rental properties is relatively low. Additionally, the absence of data on days on market suggests either a limited supply of rental units or a lack of recent transactions, which could indicate difficulty in finding and retaining Section 8 tenants.
It depends. If the landlord can attract a higher percentage of Section 8 eligible tenants, the 9.1% figure might be sufficient. However, the lack of data on DOM complicates this assessment, as it's crucial for understanding how quickly properties are rented out in the area.
In conclusion, based on the available data, purchasing in ZIP 96148 for Section 8 purposes is not advisable unless the landlord can mitigate the financial risks associated with the high property values and low rental demand. The lack of market rent data and days on market further complicates the decision-making process, indicating a need for more detailed local market analysis before proceeding.
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.