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 | $2,160 |
| 1 Bedroom | $2,370 |
| 2 Bedrooms | $3,100 |
| 3 Bedrooms | $3,860 |
| 4 Bedrooms | $4,680 |
| 5 Bedrooms | $5,429 |
| 6 Bedrooms | $6,080 |
| 7 Bedrooms | $6,566 |
| 8 Bedrooms | $6,894 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,370 | $1,078,315 | 0.22% | F |
| 2BR | $3,100 | $1,100,052 | 0.28% | F |
| 3BR | $3,860 | $1,543,057 | 0.25% | F |
| 4BR | $4,680 | $2,463,459 | 0.19% | F |
| 5BR | $5,429 | $5,300,001 | 0.1% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP 94574, Saint Helena, CA, does not work favorably for landlords participating in the Section 8 program. The Fair Market Rent (FMR) for the zip code in fiscal year 2024 is set at $2560, which is significantly lower than the market rent of $6,448 (ZORI). This disparity means that landlords would be receiving less than half of the market rate when renting through Section 8.
Acquisition in ZIP 94574 is relatively expensive, with a median home value of $1,636,613. However, the lack of data on days on market (DOM) and the low price-cut share of 0.1% suggest that homes are selling quickly without substantial discounts. This indicates that despite the high cost, properties in this area are likely to be profitable in the long term if rented at market rates.
Tenant demand in Saint Helena is moderate. With a total population of 7,457 and a renter share of 34.0%, there are approximately 2,535 renters in the area. While this number may seem adequate, the limited pool of potential tenants could make it challenging to find eligible Section 8 participants who can afford the higher rents typical of this zip code.
In conclusion, ZIP 94574 presents a challenging environment for landlords considering the Section 8 program due to the significant gap between FMR and market rent. Despite the high median home value, the quick sale times and low discount rates indicate a robust local real estate market. However, the limited number of renters and the financial constraints of Section 8 participants suggest that while acquisition is feasible, securing a steady stream of tenants through this program might be difficult. Landlords should carefully consider these factors before deciding to participate in Section 8 within this zip code.
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.