Location: Santa Rosa-Petaluma, CA | Metro: Napa, CA MSA
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 | $2,060 |
| 1 Bedroom | $2,280 |
| 2 Bedrooms | $2,990 |
| 3 Bedrooms | $3,800 |
| 4 Bedrooms | $4,450 |
| 5 Bedrooms | $5,162 |
| 6 Bedrooms | $5,781 |
| 7 Bedrooms | $6,243 |
| 8 Bedrooms | $6,555 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,990 | $849,018 | 0.35% | F |
| 3BR | $3,800 | $1,074,139 | 0.35% | F |
| 4BR | $4,450 | $1,888,874 | 0.24% | F |
U.S. Census Bureau data (2024)
The Section 8 market analysis for ZIP code 94515, Calistoga, CA, reveals several key points that are crucial for landlords and small-portfolio investors. The HUD Fair Market Rent (FMR) for FY 2024 is set at $2220, which is significantly higher than the average market rent reported by the Census ACS at $1,809. This indicates that voucher tenants can provide positive cash flow at the FMR rate, making it an attractive option for investors looking to maximize their rental income.
To further analyze the investment potential, consider the median home value in Calistoga, which stands at $1,063,724. Using this figure, we can calculate the rent-to-price ratio. With a monthly rent of $1,809, the annual rent would be approximately $21,708. Dividing this by the median home value gives us a rent-to-price ratio of about 2%, which is relatively low compared to national averages. This suggests that the area may be more suited for buy-to-rent investments rather than owner-occupied homes, given the high property values and lower rental yields.
The market dynamics in Calistoga also show that the average Days on Market (DOM) is N/A, and the percentage of listings that require a price cut is 0.1%. These figures indicate a stable housing market where properties sell quickly without needing significant price reductions. However, these metrics do not directly impact the rental market but suggest overall market stability, which can be beneficial for long-term real estate investments.
In conclusion, the strongest angle for investors in ZIP 94515 is likely cash flow. The discrepancy between the HUD FMR and the actual market rent means that voucher tenants can provide a steady, above-market income, making this a lucrative opportunity for those focused on generating rental income.
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.