Location: Santa Rosa-Petaluma, CA | Metro: Santa Rosa-Petaluma, CA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,980 |
| 1 Bedroom | $2,160 |
| 2 Bedrooms | $2,820 |
| 3 Bedrooms | $3,900 |
| 4 Bedrooms | $4,300 |
| 5 Bedrooms | $4,988 |
| 6 Bedrooms | $5,587 |
| 7 Bedrooms | $6,034 |
| 8 Bedrooms | $6,336 |
The analysis of the Section 8 cap-rate scenario for ZIP code 94953 reveals several key points that landlords and small-portfolio investors should consider. The Fair Market Rent (FMR) for a two-bedroom apartment in this area for fiscal year 2024 is set at $2380 annually. However, without a specific median home value or market rent figure for ZIP 94953, it's challenging to provide a precise gross yield calculation.
To derive an implied gross yield, we would typically divide the annual rental income by the property value. For instance, if a median home value were known, say $600,000, the implied gross yield using the FMR would be calculated as follows: $2380 / $600,000 = 0.397%, or approximately 0.4%. This is a hypothetical example, as the actual median home value is currently not available.
Market rent data is also unavailable, which means we cannot compare the FMR directly to what landlords might charge privately. Without this information, it's difficult to ascertain whether the FMR provides a more realistic gross yield compared to potential market rents. Typically, market rents can vary significantly and often exceed FMRs, which are designed to ensure affordability.
The lack of specific data on renter density and days on market (DOM) further complicates the analysis. These metrics are crucial for understanding the local rental market dynamics and how quickly properties can be leased out. Given the incomplete data, landlords should exercise caution when estimating their returns based solely on the FMR.
In conclusion, while the FMR of $2380 per year for a two-bedroom apartment in ZIP 94953 offers a baseline for rental income, the absence of critical data such as median home values and market rents makes it impossible to provide a definitive comparison of gross yields. Landlords must rely on additional research and local knowledge to make informed investment decisions.
Data Sources: FMR data from HUD (2027).
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.