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 | $3,740 |
| 5 Bedrooms | $4,338 |
| 6 Bedrooms | $4,859 |
| 7 Bedrooms | $5,248 |
| 8 Bedrooms | $5,510 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,940 | $389,251 | 0.5% | F |
| 2BR | $2,550 | $487,412 | 0.52% | F |
| 3BR | $3,500 | $617,717 | 0.57% | F |
| 4BR | $3,740 | $753,757 | 0.5% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 95446, Guerneville, CA, reveals that the HUD Fair Market Rent (FMR) for FY 2024 stands at $2,030. This figure is notably lower than the current market rent, which is measured at $2,588 according to ZORI. Given this comparison, it's evident that voucher tenants will only cashflow marginally at the HUD FMR rate, as they would be paying significantly below the market rate. To achieve positive cashflow, landlords would need to target premium units or properties with lower operational costs.
The median home value in this area is $522,103. By calculating the rent-to-price ratio using the HUD FMR, we find that the ratio is approximately 0.39%, while using the market rent yields about 0.49%. These ratios suggest that rental income is relatively low compared to property values, which could impact the attractiveness of rental investments versus purchasing a home for personal use. However, given the N/A-day median DOM and 0.2% price-cut share, the market appears stable with little pressure on sellers to reduce prices, indicating a balanced environment where rental investments can still find their niche.
The strongest angle for investors in ZIP 95446 remains cashflow, despite the marginal nature of voucher tenant payments at the HUD FMR. The stability of the local real estate market and the potential for positive cashflow from premium units make this a viable investment option, particularly for those looking to secure a steady stream of rental income without the volatility often associated with fluctuating real estate markets.
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.