Location: Sacramento--Roseville--Arden-Arcade, CA | Metro: Sacramento--Roseville--Arden-Arcade, CA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,660 |
| 1 Bedroom | $1,710 |
| 2 Bedrooms | $2,100 |
| 3 Bedrooms | $2,750 |
| 4 Bedrooms | $3,180 |
| 5 Bedrooms | $3,689 |
| 6 Bedrooms | $4,132 |
| 7 Bedrooms | $4,463 |
| 8 Bedrooms | $4,686 |
The ZIP code 96158 in Unknown, CA presents several challenges for landlords considering Section 8 investments. One significant issue is tenant turnover, which can be higher when comparing the market rent to the $2020 Fair Market Rent (FMR) set for FY 2024. This discrepancy suggests that tenants might find it difficult to secure housing outside of the voucher program, leading to potential instability and frequent changes in occupancy.
Vacancy exposure is another critical concern. With an unknown number of days on the market (DOM), it's challenging to predict how long properties might remain vacant. Vacancies can lead to lost rental income, increased marketing costs, and the need for additional property management resources. The uncertainty surrounding DOM in this area makes it difficult to manage cash flow effectively.
Deferred maintenance is also a risk factor. Without specific data on the typical home value and median income in ZIP 96158, it's unclear how much financial cushion landlords have to cover unexpected repairs and maintenance. Properties in areas with lower median incomes and potentially lower home values might require more frequent and costly upkeep, which could strain a landlord's budget.
However, these risks must be weighed against the high proportion of renters in the area. Although the exact percentage of the renter share is not provided, a high concentration of renters typically translates into a greater demand for Section 8 vouchers. This demand can stabilize the rental market and provide a steady stream of qualified tenants who are committed to paying their rent through the voucher system.
Verdict: Moderate risk for a first-time Section 8 landlord.
Data Sources: FMR data from HUD (2027).
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.