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 | $2,470 |
| 1 Bedroom | $2,880 |
| 2 Bedrooms | $3,540 |
| 3 Bedrooms | $4,630 |
| 4 Bedrooms | $5,210 |
| 5 Bedrooms | $6,044 |
| 6 Bedrooms | $6,769 |
| 7 Bedrooms | $7,311 |
| 8 Bedrooms | $7,677 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,880 | $806,557 | 0.36% | F |
| 2BR | $3,540 | $946,041 | 0.37% | F |
| 3BR | $4,630 | $1,261,573 | 0.37% | F |
| 4BR | $5,210 | $1,732,028 | 0.3% | F |
| 5BR | $6,044 | $2,153,629 | 0.28% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP 94005 (Brisbane, CA) provides a clear picture of potential investment yields. Using the Fair Market Rent (FMR) for a 2-bedroom apartment set at $3070 per month for FY 2024, the annualized income would be $36,840. Against the median home value of $1,159,402, this translates to an implied gross yield of approximately 3.2%. This calculation is based on the assumption that the property would generate rental income equivalent to the FMR.
Alternatively, considering the market rent indicated by Zillow's ZORI metric at $3,698 per month, the annualized income would be $44,376. When compared to the median home value, this scenario suggests a gross yield of about 3.8%. This higher yield reflects the premium that landlords might command in the local market over the subsidized rates.
The 45.3% renter density in Brisbane, CA, supports a moderate level of demand for rental properties, including those under Section 8 programs. However, the N/A-day Days on Market (DOM) indicates incomplete data, which could suggest either a very tight market with quick turnover or issues with data collection. Given the high median home value and typical market conditions, the gross yield based on market rent ($3,698/month) appears more realistic for most investors. The disparity between the FMR and market rent highlights the potential challenges landlords face when participating in Section 8, where the gross yield is significantly lower at 3.2% compared to the market-driven yield of 3.8%.
Investors should consider these figures carefully, as they represent the baseline gross yields without accounting for expenses such as maintenance, management fees, and vacancy rates. The choice between accepting Section 8 tenants or seeking market-rate rents will depend on individual risk tolerance and investment goals. For those who prioritize stable, government-backed income, the Section 8 scenario may still be attractive despite the lower yield. Conversely, those aiming for higher returns might lean towards market-rate rentals, accepting the associated risks and management complexities.
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.