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 for ZIP code 94955 reveals incomplete data, specifically regarding the market rent and median home values, which are currently listed as N/A. However, we can still derive some insights based on the available Fair Market Rent (FMR) data for a two-bedroom apartment, which stands at an annualized rate of $2380 for fiscal year 2024.
To calculate the gross yield, we would typically divide the annual rental income by the property's value. Since the median home value is not provided, we cannot compute the exact gross yield for the Section 8 scenario. However, if we assume that the median home value in 94955 is similar to that of comparable areas, the gross yield would likely be low due to the relatively modest FMR compared to typical home values.
In the absence of market rent figures, we cannot directly compare the gross yields between Section 8 and market rents. Nonetheless, it is reasonable to infer that market rents would generally offer a higher gross yield than the Section 8 FMR. This is because market rents tend to reflect the actual demand and pricing dynamics of the local real estate market, which often exceed government-set FMRs.
The lack of specific data points such as renter density and days on market (DOM) makes it challenging to determine the most realistic scenario. However, if we consider that typical renter densities and DOMs vary widely across different regions, it is likely that a higher renter density and shorter DOM would favor market rentals over Section 8 properties. This is because a higher density of renters and quicker turnover times suggest stronger market demand and potentially better cash flow for landlords.
In conclusion, while the precise figures are unavailable, the implication is that market rentals in ZIP 94955 would provide a higher gross yield compared to Section 8 rentals, due to the significantly lower FMR for Section 8. Investors should seek additional local data to refine their investment decisions, especially concerning the median home value and current market rent trends.
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.