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 | $1,530 |
| 1 Bedroom | $1,570 |
| 2 Bedrooms | $1,930 |
| 3 Bedrooms | $2,530 |
| 4 Bedrooms | $2,920 |
| 5 Bedrooms | $3,387 |
| 6 Bedrooms | $3,793 |
| 7 Bedrooms | $4,096 |
| 8 Bedrooms | $4,301 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,570 | $411,457 | 0.38% | F |
| 2BR | $1,930 | $495,911 | 0.39% | F |
| 3BR | $2,530 | $675,593 | 0.37% | F |
| 4BR | $2,920 | $948,057 | 0.31% | F |
| 5BR | $3,387 | $1,411,413 | 0.24% | F |
U.S. Census Bureau data (2024)
The dynamics of the South Lake Tahoe, CA real estate market, specifically ZIP 96150, reveal a balanced yet competitive environment. With a Fair Market Rent (FMR) set at $1770 for the fiscal year 2024, landlords can expect a benchmark for rental pricing that aligns with government guidelines. The actual market rent, measured by Zillow's ZORI index, stands at $2,350, indicating a premium over the FMR. This suggests that the local economy supports higher rents, possibly due to tourism and recreational activities prevalent in the area.
A 0.1% price-cut share signals that very few properties are being discounted to attract buyers, which is a positive sign for sellers. It indicates strong interest in the available properties, keeping prices stable. The days on market (DOM) figure of 64 days further corroborates this, showing that homes are selling relatively quickly compared to national averages, which often exceed 80 days. This quick turnover implies that demand is robust, matching or slightly exceeding the supply.
The median home value of $663,206 reflects the high cost of living in this scenic location. Given the 38.8% renter share, it's evident that a significant portion of the population opts for renting rather than owning. This high percentage of renters suggests ongoing long-term housing pressure, as many residents might find homeownership unaffordable. Consequently, landlords and small-portfolio investors have a steady tenant pool, making rental properties a reliable investment option.
In summary, the market in ZIP 96150 is characterized by strong demand, minimal price cuts, and a high median home value, all of which point towards a market where demand closely matches supply. The substantial renter share points to enduring housing affordability challenges, creating a stable rental market for property owners.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.