Section 8 Fair Market Rent (FMR) for ZIP 94014 - 2027

Investment Score for ZIP 94014

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	$2,240
1 Bedroom	$2,680
2 Bedrooms	$3,250
3 Bedrooms	$4,150
4 Bedrooms	$4,380
5 Bedrooms	$5,081
6 Bedrooms	$5,691
7 Bedrooms	$6,146
8 Bedrooms	$6,453

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$2,680	$745,129	0.36%	F
2BR	$3,250	$895,373	0.36%	F
3BR	$4,150	$1,053,723	0.39%	F
4BR	$4,380	$1,265,713	0.35%	F
5BR	$5,081	$1,333,516	0.38%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 94014 (Daly City, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for Daly City, CA (ZIP code 94014) in 2026 is set at $2050 for 0-bedroom units, $2510 for 1-bedroom units, $2990 for 2-bedroom units, $3760 for 3-bedroom units, and $3960 for 4-bedroom units. These figures represent the maximum amount that a Section 8 voucher holder can pay for rent based on the size of the unit. However, the actual rental market in Daly City is significantly higher. For instance, the Zillow median price for a 2-bedroom unit is $903,343, which translates to a price-to-FMR ratio of 25.2x. This means that the actual rent for a 2-bedroom unit could be around $2990 * 25.2 = $75,398 per year, or approximately $6283 per month. Given these high actual rents, voucher holders face significant constraints in finding affordable housing within their budget. The FMR for a 2-bedroom unit is only 29.2% of the median household income ($122,966), indicating that even without a voucher, it would be challenging for many residents to afford a 2-bedroom home. #### Affordability & Renter Profile Daly City has a population of 45,315, with 40.3% of residents being renters. This suggests a substantial demand for rental properties, particularly among those who may be seeking affordable options. The occupancy rate stands at 88.5%, indicating that the market is relatively tight, with most available units being occupied. The median household income of $122,966 implies that Daly City attracts a mix of middle-income and higher-income residents. However, given the high price-to-FMR ratio, the rental market is likely dominated by higher-income individuals who can afford the premium rents. This makes it difficult for lower-income residents, especially those relying on Section 8 vouchers, to find suitable housing within their budget. The market dynamics suggest that Daly City is a tight rental market, with limited options for low-income renters. #### Investor Angle From an investor perspective, Daly City's rental market presents both opportunities and challenges. The high price-to-FMR ratio indicates that there is significant potential for cash flow if an investor can secure tenants willing to pay the market rates. However, for Section 8-focused investors, the situation is less favorable. Given that the FMR for a 2-bedroom unit is $2990, an investor would need to ensure that the property's expenses and mortgage payments do not exceed this amount to maintain profitability. In reality, with the median Zillow price for a 2-bedroom unit being $903,343, the monthly mortgage payment alone could easily surpass the FMR, making it challenging to achieve positive cash flow solely through Section 8 vouchers. The investment grade for Daly City would be considered moderate to low for Section 8-focused investors due to the high cost of acquiring properties and the limited number of units that can be rented out at FMR levels. Investors looking to capitalize on the high rental prices might find better returns by targeting higher-income renters who are willing to pay above the FMR. #### Specific Actionable Insights 1. **Focus on Higher-Income Renters**: Given the high price-to-FMR ratio, investors should consider targeting higher-income renters who can afford the premium rents. For example, a 2-bedroom unit priced at $6283 per month would likely attract a more affluent tenant base, potentially leading to higher returns. 2. **Consider Mixed-Income Developments**: To balance the needs of low-income residents with the realities of the high rental market, investors might explore developing mixed-income housing projects. This approach allows for a portion of units to be rented at FMR levels while other units are rented at market rates, providing a more sustainable financial model. #### Bottom Line For Section 8-focused investors, Daly City (ZIP code 94014) is a challenging market due to the high price-to-FMR ratio and limited availability of units that can be rented out at FMR levels. The recommendation is to **skip** this ZIP code unless you have a strategy to target higher-income renters or develop mixed-income housing projects. The tight rental market and high costs make it difficult to achieve positive cash flow purely through Section 8 vouchers.

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.