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 | $2,370 |
| 1 Bedroom | $2,610 |
| 2 Bedrooms | $3,410 |
| 3 Bedrooms | $4,240 |
| 4 Bedrooms | $5,150 |
| 5 Bedrooms | $5,974 |
| 6 Bedrooms | $6,691 |
| 7 Bedrooms | $7,226 |
| 8 Bedrooms | $7,587 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $4,240 | $422,313 | 1% | B |
U.S. Census Bureau data (2024)
To integrate ZIP 94567 into a Section 8 portfolio strategy, focus on it as an appreciation play. The Fair Market Rent (FMR) for ZIP 94567 in fiscal year 2024 is set at $2,640, while the current market rent stands at $2,250. This indicates that properties in this area are currently undervalued compared to the government's rental standards.
The median home value in ZIP 94567 is $438,882, which is relatively stable and does not show significant volatility. However, the key metric here is the price-cut share and days on market (DOM), both of which are marked as N/A. This suggests that there is little to no need for price reductions and that homes are selling quickly, indicating strong demand and potential for capital appreciation.
ZIP 94567 is part of the Napa, CA Metropolitan Statistical Area (MSA), known for its robust real estate market driven by tourism and wine production. While the renter share is 37.7%, which is a moderate figure, the median income of $80,833 provides a solid economic foundation for the area. This high median income supports the idea that the local economy can sustain higher rents, making ZIP 94567 a prime candidate for appreciation over time.
Defending the appreciation play:
The difference between the FMR and the market rent presents an opportunity for landlords to increase rental rates gradually, aligning them with government standards and potentially outpacing inflation.
The lack of price-cutting and quick sales indicate a strong seller's market, where property values are likely to rise due to limited supply and high demand.
The median income supports the ability of residents to pay higher rents, reducing the risk of default and vacancy.
Therefore, ZIP 94567 should be considered an appreciation play within a Section 8 portfolio strategy. It offers a blend of stability and growth potential, benefiting from the economic strengths of the Napa, CA MSA without the immediate need for cash flow anchoring through artificially low rental rates.
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.