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 | $2,530 |
| 1 Bedroom | $2,780 |
| 2 Bedrooms | $3,640 |
| 3 Bedrooms | $4,530 |
| 4 Bedrooms | $5,490 |
| 5 Bedrooms | $6,368 |
| 6 Bedrooms | $7,132 |
| 7 Bedrooms | $7,703 |
| 8 Bedrooms | $8,088 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $3,640 | $935,678 | 0.39% | F |
| 3BR | $4,530 | $1,442,772 | 0.31% | F |
| 4BR | $5,490 | $2,125,969 | 0.26% | F |
U.S. Census Bureau data (2024)
A skeptical investor considering Yountville, CA (ZIP 94599) for Section 8 properties might raise several concerns. Let's address these objections directly with the available data.
Objection 1: Will Fair Market Rent (FMR) of $2,510 (for zip FY 2024) cover the mortgage on a $1,357,183 home?
The FMR is a critical benchmark for determining rental subsidies. In Yountville, the FMR for FY 2024 is set at $2,510. To evaluate if this amount can cover a mortgage on a home priced at $1,357,183, we must consider the typical interest rates and loan terms. Assuming a 30-year fixed-rate mortgage at an average rate of 4.5%, the monthly payment on a principal of $1,357,183 would be approximately $6,800. This clearly exceeds the FMR of $2,510. Therefore, the FMR alone will not cover the mortgage payments on such a high-priced property. Landlords would need to supplement the income from other sources or accept a lower occupancy rate.
Objection 2: Is there enough renter demand at 32.5%?
The percentage of renters in a given area is a key indicator of potential demand. In Yountville, the renter population makes up 32.5% of the total housing units. While this figure is below the national average, it does not necessarily mean there is insufficient demand. The local economy, particularly the hospitality and food sectors, which are significant in Yountville, can drive demand for rentals. However, the data does not provide a detailed breakdown of renter demographics or their preferences, which could offer further insight into the robustness of the rental market.
Objection 3: Will vouchers keep pace with market rents of $2,376?
The market rent in Yountville is $2,376, slightly below the FMR. Vouchers are designed to help low-income families afford housing that is otherwise out of reach. Historically, voucher amounts have adjusted based on changes in FMRs, but the data does not specify future adjustments. Given the current FMR and market rent, vouchers should cover the majority of the cost, but it is crucial to monitor any changes in both FMR and voucher policies to ensure continued alignment. The U.S. Department of Housing and Urban Development (HUD) typically updates voucher amounts annually, so staying informed about these updates is essential.
In conclusion, while the data provides some answers, it also highlights areas where further investigation is necessary. For instance, understanding the local economic drivers and keeping abreast of HUD policy changes will be vital for making informed investment decisions in Yountville.
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.