SQL 2016 Service Pack 1 is now supported for SCOM 2016 deployments.
https://docs.microsoft.com/en-us/system-center/scom/plan-sqlserver-design#sql-server-requirements
There is no Update Rollup level requirement for this. You can deploy SCOM 2016 in new deployments on SQL 2016 SP1, and you may upgrade existing deployments to SQL 2016 SP1.