Section 8 Fair Market Rent (FMR) for ZIP 95409 - 2027

Location: Santa Rosa-Petaluma, CA | Metro: Santa Rosa-Petaluma, CA MSA

Investment Score for ZIP 95409

Monthly Rent (2BR)

$3,150

Median Price (2BR)

$624,198

1% Rule

0.5%

Annual Yield

6.06%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$2,210
1 Bedroom	$2,410
2 Bedrooms	$3,150
3 Bedrooms	$4,360
4 Bedrooms	$4,800
5 Bedrooms	$5,568
6 Bedrooms	$6,236
7 Bedrooms	$6,735
8 Bedrooms	$7,072

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$2,410	$391,048	0.62%	D
2BR	$3,150	$624,198	0.5%	F
3BR	$4,360	$793,979	0.55%	F
4BR	$4,800	$952,075	0.5%	F
5BR	$5,568	$1,222,774	0.46%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

25,616

Median Household Income

$107,867

Housing Units

12,280

Renter Percentage

30.3%

Occupancy Rate

93.2%

Renter Occupied

3,469

Santa Rosa, CA, represented by ZIP code 95409, is a thriving city in Sonoma County known for its blend of urban amenities and natural beauty. The local real estate market offers both rental and homeownership opportunities, making it attractive for various types of investors.

The Fair Market Rent (FMR) for ZIP 95409 in fiscal year 2024 is set at $2,480, providing a benchmark for rental pricing that reflects the affordability and demand in the area.
The market rent, as indicated by the Zillow Observed Rental Index (ZORI), stands at $2,686. This figure suggests that actual rents slightly exceed the FMR, indicating a competitive market where properties can command higher rates.
The median home value in Santa Rosa is $780,303, which is significantly higher than the national average, reflecting the desirability and robustness of the housing market.
Renters make up 30.3% of the population, highlighting a substantial segment of the market dedicated to leasing rather than purchasing homes, which bodes well for rental investments.
The days on market (DOM) for rental listings is 16 days, indicating a quick turnover and strong demand for available units, which is beneficial for landlords looking to minimize vacancy periods.
The median household income in the area is $107,867, providing a financial cushion that supports the ability of residents to pay higher rents or mortgage payments, thus stabilizing the real estate market.

Investors in Santa Rosa, CA, can expect a robust rental market supported by high median incomes and a significant share of renters. Properties can be priced slightly above the FMR, aligning closely with the ZORI, while benefiting from a quick rental listing turnover. The high median home value also suggests potential for appreciation in property values, making both rental and homeownership investment strategies viable.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.