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 | $2,020 |
| 1 Bedroom | $2,210 |
| 2 Bedrooms | $2,890 |
| 3 Bedrooms | $3,880 |
| 4 Bedrooms | $4,390 |
| 5 Bedrooms | $5,092 |
| 6 Bedrooms | $5,703 |
| 7 Bedrooms | $6,159 |
| 8 Bedrooms | $6,467 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,890 | $898,258 | 0.32% | F |
| 3BR | $3,880 | $1,387,065 | 0.28% | F |
U.S. Census Bureau data (2024)
The Section 8 program in ZIP code 95452, located in Kenwood, CA, presents a significant opportunity for landlords and small-portfolio investors due to the disparity between the Fair Market Rent (FMR) and the actual market rent. The FMR for ZIP 95452 in fiscal year 2024 is set at $2350, while the Census ACS reports the market rent at $3501. This creates a gap of $1151, which translates to a difference of approximately 33%.
Given that the FMR is lower than the market rent, it means that landlords accepting Section 8 vouchers will be renting properties below the open-market rates. For instance, a landlord could potentially rent out a unit for $3501, but with a voucher, they would receive only $2350. This scenario can lead to reduced profitability compared to renting at market rates. However, there are still benefits to consider.
In Kenwood, where 29.4% of residents are renters and the median home value is $1,271,389, the median household income stands at $118,986. These economic conditions suggest that there is a substantial demand for affordable housing options. By participating in the Section 8 program, landlords ensure a stable tenant base with guaranteed rental payments, even if the amount is less than the market rate. Additionally, the lower income levels indicate a higher need for subsidized housing, making Section 8 vouchers an attractive option for many potential tenants.
To illustrate the impact, let's break down the numbers. A landlord renting a property at the market rate of $3501 would earn significantly more than the FMR of $2350. However, the reliability of Section 8 payments can offset the lower rent amount. Furthermore, the administrative burden and screening process for Section 8 tenants are handled by the local housing authority, reducing the landlord's workload.
Despite the lower rental income, the stability and predictability of Section 8 payments can be a strategic advantage in a market where 29.4% of the population relies on rental housing. The median home value of $1,271,389 and median income of $118,986 highlight the economic diversity of Kenwood, suggesting that a mix of market-rate and subsidized rentals can cater to different segments of the community effectively.
In summary, while the gap between FMR and market rent in ZIP 95452 is substantial, the consistent payment and reduced administrative tasks make Section 8 vouchers a viable option for landlords and small-portfolio investors looking to secure a steady stream of income and contribute to the local housing needs.
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.