Location: Napa, 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 | $2,300 |
| 1 Bedroom | $2,530 |
| 2 Bedrooms | $3,310 |
| 3 Bedrooms | $4,120 |
| 4 Bedrooms | $5,000 |
| 5 Bedrooms | $5,800 |
| 6 Bedrooms | $6,496 |
| 7 Bedrooms | $7,016 |
| 8 Bedrooms | $7,367 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,530 | $603,165 | 0.42% | F |
| 2BR | $3,310 | $696,335 | 0.48% | F |
| 3BR | $4,120 | $817,985 | 0.5% | F |
| 4BR | $5,000 | $1,145,414 | 0.44% | F |
| 5BR | $5,800 | $1,561,593 | 0.37% | F |
U.S. Census Bureau data (2024)
The ZIP code 94559, located in Napa, California, presents an interesting scenario for both renters and landlords. The median household income in this area stands at $105,188, which provides a substantial financial cushion for most residents. However, when it comes to affording the market-rate rent of $2,670 per month (ZORI), the situation becomes less favorable. This figure represents a significant portion of the average household's income, making it challenging for many renters to pay without assistance.
Comparatively, the Fair Market Rent (FMR) for the zip code in fiscal year 2024 is set at $2,550. This amount, which is slightly lower than the ZORI, is the benchmark used for determining Housing Choice Voucher payments. Given the close alignment between the ZORI and FMR, it suggests that voucher holders can find units within their budget, although they might be limited to certain types or locations of properties.
In ZIP 94559, where 51.0% of the population are renters and the total population is 27,714, the affordability gap is a critical issue. Many potential tenants may struggle to find housing that fits within their budget, especially if they do not have access to rental assistance programs. This dynamic creates a competitive environment for landlords, as they must consider whether to cater to voucher recipients or focus on cash-paying tenants who can afford the higher market rates.
The takeaway for landlords is clear: while cash-paying tenants offer immediate liquidity and potentially higher rents, accepting vouchers can provide a steady stream of income and access to a broader pool of tenants. Landlords should evaluate their property management costs and the local demand for subsidized housing before deciding on their strategy. For those willing to navigate the voucher system, it can be a viable option given the high median income and the tight rental market in Napa, CA.
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.