Location: Santa Rosa-Petaluma, CA | Metro: Santa Rosa-Petaluma, 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 | $1,760 |
| 1 Bedroom | $1,940 |
| 2 Bedrooms | $2,550 |
| 3 Bedrooms | $3,500 |
| 4 Bedrooms | $3,740 |
| 5 Bedrooms | $4,338 |
| 6 Bedrooms | $4,859 |
| 7 Bedrooms | $5,248 |
| 8 Bedrooms | $5,510 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,550 | $1,154,875 | 0.22% | F |
| 3BR | $3,500 | $1,557,870 | 0.22% | F |
| 4BR | $3,740 | $1,975,364 | 0.19% | F |
U.S. Census Bureau data (2024)
The Section 8 program in ZIP code 94923, located in Occidental, CA, presents a significant opportunity for landlords and small-portfolio investors due to the substantial gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for ZIP 94923 in fiscal year 2024 is set at $2730, while the Census American Community Survey (ACS) reports the average market rent at $1,722. This means that the FMR is $1008 higher than the market rent, representing an increase of approximately 58.5%.
In this scenario, where the FMR exceeds the market rent, landlords can leverage Section 8 vouchers to achieve higher yields on their rental properties. Given that only 27.1% of residents in Occidental are renters, and the median home value stands at $1,402,248, it's evident that owning property is favored over renting. However, the median income in the area is $147,546, which indicates that even though the income levels are relatively high, there remains a segment of the population that benefits from subsidized housing.
The higher FMR allows landlords to receive a greater amount per unit than what they might typically charge in the open market, thus increasing their overall profitability. For instance, if a landlord charges $1,722 in market rent, they would receive an additional $1008 from the Section 8 voucher program, bringing the total rent received to $2730. This not only covers the costs associated with maintaining and managing the property but also provides a margin that can be reinvested or used to cover other expenses.
However, it's important to note that the higher FMR does not automatically translate into a higher profit margin. Landlords must consider the administrative costs and potential delays in receiving payments from the voucher program. Additionally, the maintenance standards required under Section 8 may be stricter, necessitating additional investments to ensure compliance.
In summary, the gap between the FMR and market rent in ZIP 94923 makes it a favorable environment for landlords and small-portfolio investors to participate in the Section 8 program, potentially increasing their yields by nearly 58.5%. Despite the administrative and compliance challenges, the opportunity to serve a portion of the population with lower incomes while receiving rents above the local market rate is compelling.
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.