Location: San Francisco, CA | Metro: San Francisco, CA HUD Metro FMR Area
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 | $2,740 |
| 1 Bedroom | $3,200 |
| 2 Bedrooms | $3,940 |
| 3 Bedrooms | $5,150 |
| 4 Bedrooms | $5,800 |
| 5 Bedrooms | $6,728 |
| 6 Bedrooms | $7,535 |
| 7 Bedrooms | $8,138 |
| 8 Bedrooms | $8,545 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $3,200 | $594,575 | 0.54% | F |
| 2BR | $3,940 | $1,579,876 | 0.25% | F |
| 3BR | $5,150 | $2,179,106 | 0.24% | F |
| 4BR | $5,800 | $2,808,843 | 0.21% | F |
| 5BR | $6,728 | $3,154,159 | 0.21% | F |
U.S. Census Bureau data (2024)
ZIP 94002 encompasses a part of Belmont, California, known for its affluent and suburban character. With a total population of 27,534, nearly half of the residents—45.0%—are renters, indicating a significant demand for rental properties in the area. The median household income in ZIP 94002 is a robust $203,965, reflecting the high economic status of its inhabitants. This is further underscored by the median home value, which stands at an impressive $2,339,000, highlighting the premium real estate market in the neighborhood.
The rent economics in ZIP 94002 are favorable for investors. According to the Fair Market Rent (FMR) data for fiscal year 2024, the average rent for a two-bedroom apartment is set at $3,750. In contrast, the actual market rent, measured by the Zillow Observed Rent Index (ZORI), is slightly lower at $3,063. This discrepancy suggests that there is potential for higher rents through Section 8 vouchers, which can be a reliable source of income for landlords.
Given these conditions, ZIP 94002 is well-suited for both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the steady flow of Section 8 vouchers ensures consistent cash flow without the need for active property management. On the other hand, for those looking to actively manage and improve their investments, the high median income and median home value indicate a strong local economy where rental properties can command above-market rates once upgraded. This dual suitability makes ZIP 94002 an attractive investment destination for a variety of real-estate strategies.
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.