Location: Santa Rosa-Petaluma, CA | Metro: San Francisco, CA HUD Metro FMR Area
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 | $2,240 |
| 1 Bedroom | $2,680 |
| 2 Bedrooms | $3,250 |
| 3 Bedrooms | $4,150 |
| 4 Bedrooms | $4,530 |
| 5 Bedrooms | $5,255 |
| 6 Bedrooms | $5,886 |
| 7 Bedrooms | $6,357 |
| 8 Bedrooms | $6,675 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $3,250 | $701,695 | 0.46% | F |
| 3BR | $4,150 | $984,115 | 0.42% | F |
| 4BR | $4,530 | $1,274,032 | 0.36% | F |
| 5BR | $5,255 | $1,537,321 | 0.34% | F |
U.S. Census Bureau data (2024)
The ZIP code 94945, located in Novato, CA, presents a dynamic rental market influenced by both federal guidelines and local demand. The Fair Market Rent (FMR) set at $2930 for the fiscal year 2024 reflects the government's benchmark for affordability, while the actual market rent, as indicated by the Zillow Observed Rent Index (ZORI), stands at $4,123. This significant gap suggests that local rents are above the federal guideline, indicating a strong demand for rental properties in the area.
The low price-cut share of 0.2% signals that landlords are generally able to maintain their asking rents without needing to lower them significantly to attract tenants, further supporting the notion of a robust rental market. Although the days on market (DOM) is listed as N/A, the median home value of $1,082,455 suggests a high-end residential market that may be less volatile in terms of property turnover compared to more affordable areas.
A key indicator of the long-term housing pressure in this market is the 29.6% renter share. This figure implies a substantial portion of the population prefers or requires renting over owning, which can put continuous upward pressure on rental rates. It also indicates that there is a steady demand for rental units, making it a potentially attractive investment for landlords and small-portfolio investors looking to capitalize on a consistent income stream.
In summary, the market in ZIP 94945 appears to be one where demand for rentals is likely outpacing supply, given the disparity between FMR and ZORI, and the relatively high renter share. Landlords and investors should consider the strong rental dynamics and the potential for sustained rental income when evaluating this market.
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.