Market Intelligence

Sacramento, CA

Updated quarterly · Data sourced from Zillow ZHVI/ZORI, Census ACS, and FHFA. · California overview

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Home Value

$560k+1.5%

Median Rent

$2,150+1.8%

Per month average

Gross Yield

4.61%

Annual rent / value

Rent / Price

0.384%

1% rule benchmark

HH Income

$90,000

Median household

Owner-Occ

62.0%

Renter-Occ

38.0%

Tenant demand share

Population

2.4M

Metro area census

Market Analysis

The Sacramento, CA real estate market currently sits at a median home value of $560k with median rents around $2,150/month, producing a gross yield of 4.61%. That puts Sacramento in the category of compressed gross yield, primarily an appreciation play. Over the past year, home values are up 1.5%, while rents rose 1.8%, the gap between those two trends is what determines whether yield compresses or expands over time for buy-and-hold investors in California. Sacramento is an owner-occupier market (62% owner-occupied) where investor competition is generally lighter, with median household income of $90,000 setting the affordability ceiling on future rent growth.

Frequently asked questions

What is the average rent in Sacramento, CA?
As of late 2025, the median rent in Sacramento is approximately $2,150 per month, with rent growth of 1.8% year over year.
Is Sacramento a good market for rental property investing?
Sacramento produces a gross rental yield of about 4.61%. That is below the 7% LTR benchmark, so investors in Sacramento typically combine modest cash flow with appreciation upside. Run your specific numbers in a calculator before committing capital.
What is the median home price in Sacramento?
The median home value in Sacramento, CA is approximately $560,000, up 1.5% from a year ago.
How have home prices changed in Sacramento over the past year?
Home values in Sacramento have moved 1.5% year over year, while rents have changed by 1.8%. This price-to-rent gap is the single biggest driver of long-term rental investor returns in the California market.
What is the rent-to-price ratio in Sacramento?
Sacramento has a rent-to-price ratio of 0.384%, meaning monthly rent is about 0.384% of the home's price. The "1% rule" used by buy-and-hold investors looks for 1.0%+; this market falls short of that bar, which is typical for most large US metros today.

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