Location: Vallejo, 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 | $2,460 |
| 1 Bedroom | $2,700 |
| 2 Bedrooms | $3,530 |
| 3 Bedrooms | $4,390 |
| 4 Bedrooms | $5,330 |
| 5 Bedrooms | $6,183 |
| 6 Bedrooms | $6,925 |
| 7 Bedrooms | $7,479 |
| 8 Bedrooms | $7,853 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,700 | $534,615 | 0.51% | F |
| 2BR | $3,530 | $660,970 | 0.53% | F |
| 3BR | $4,390 | $838,413 | 0.52% | F |
| 4BR | $5,330 | $1,084,442 | 0.49% | F |
| 5BR | $6,183 | $1,684,354 | 0.37% | F |
U.S. Census Bureau data (2024)
Napa 94558 is the core of the renowned wine country, characterized by a high quality of life and a tourism-driven economy. The neighborhood offers a mix of historic homes and modern developments, appealing to families and professionals who value access to world-class dining and outdoor recreation. Major local institutions, such as Queen of the Valley Medical Center, serve as significant employment hubs, providing a stable economic base that supports the housing market.
From a numerical perspective, the HUD Fair Market Rent (FMR) for a 2-bedroom unit in FY2026 is $2,900, while the current market rent sits at $2,841, creating a negative gap of -$59. This indicates the local voucher rate is slightly above market averages, offering a ceiling for guaranteed income. The median home value is $907,918, with a median 2BR sale price of $658,905. Properties are moving slowly, with a median days on market of 74 days. Given these figures, voucher tenants essentially cover market parity, but the high acquisition price relative to rent means cash flow is tight without significant down payment assistance.
The tenant pool is bolstered by a median household income of $113,269, yet the renter share is only 32.5%, suggesting a predominantly ownership-oriented community. The area features top-rated schools within the Napa Valley Unified School District and robust walkability in downtown areas, which drives demand from families seeking stability. However, the high cost of entry creates a barrier for many renters, making the voucher program a critical pathway for lower-income service workers employed by the local hospitality and healthcare sectors to remain in the community.
The strongest investor angle in 94558 is long-term appreciation and stability rather than immediate aggressive cash flow. With the FMR slightly exceeding market rent and the high median home value, equity growth is the primary wealth driver. Investors should target properties near major employers like the medical center to ensure consistent demand from voucher holders, relying on the area’s enduring desirability to secure asset value over time.
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.