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 | $3,780 |
| 5 Bedrooms | $4,385 |
| 6 Bedrooms | $4,911 |
| 7 Bedrooms | $5,304 |
| 8 Bedrooms | $5,569 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,940 | $412,504 | 0.47% | F |
| 2BR | $2,550 | $477,163 | 0.53% | F |
| 3BR | $3,500 | $739,369 | 0.47% | F |
| 4BR | $3,780 | $884,507 | 0.43% | F |
U.S. Census Bureau data (2024)
The ZIP code 94931, located in Cotati, California, presents an interesting scenario for both renters and landlords. The median household income in this area stands at $101,994, while the market rate for rent (ZORI) is $2,748. This means that a significant portion of the monthly income is dedicated to housing costs, which can be challenging for residents.
In comparison, the Fair Market Rent (FMR) set by the government for the fiscal year 2024 is $2,220. This lower figure represents the amount that housing authorities will pay to landlords who accept Section 8 vouchers. Given the discrepancy between the ZORI and FMR, it becomes evident that there is a notable affordability gap for renters in Cotati.
With 40.8% of the population being renters and a total population of 9,487, the competition among landlords is likely to be intense. Renters are seeking affordable options, and landlords who offer properties at or near the FMR level may attract more tenants. However, those willing to charge closer to the ZORI might find fewer interested parties due to the higher cost burden.
The takeaway for landlords considering their rental strategy is clear: accepting Section 8 vouchers can provide a steady stream of income, albeit at a lower rate than market rents. For landlords looking to maximize their revenue, they should be prepared for increased competition and possibly slower turnover rates. Conversely, those who can offer units at the FMR level or slightly above may find a more receptive audience among the local renter population.
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.