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 | $2,310 |
| 1 Bedroom | $2,700 |
| 2 Bedrooms | $3,320 |
| 3 Bedrooms | $4,340 |
| 4 Bedrooms | $4,880 |
| 5 Bedrooms | $5,661 |
| 6 Bedrooms | $6,340 |
| 7 Bedrooms | $6,847 |
| 8 Bedrooms | $7,189 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $3,320 | $964,153 | 0.34% | F |
| 3BR | $4,340 | $1,483,926 | 0.29% | F |
| 4BR | $4,880 | $1,917,509 | 0.25% | F |
| 5BR | $5,661 | $2,421,128 | 0.23% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 94019, which encompasses Half Moon Bay, CA, and part of San Mateo County, revolve around the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment set at $2980 for fiscal year 2024. This SAFMR is specifically tailored for this ZIP code, reflecting the unique rental market conditions here.
To understand the financial implications for landlords, it's crucial to break down the components of a Section 8 voucher payment. The voucher system covers the difference between the SAFMR and the tenant's portion of the rent, which is typically 30% of their income. In ZIP 94019, the local market rent, measured by ZORI (Zillow Observed Rental Index), is higher at $3,774 per month for a two-bedroom unit. This means landlords can expect the total rent to be closer to market rates if they choose to accept Section 8 tenants.
A landlord should know that the SAFMR of $2980 includes an allowance for utilities. For a two-bedroom apartment, the utility allowance is usually around $400-$500, depending on the specifics of the voucher and the tenant's household size. Thus, the actual reimbursement a landlord receives from the government for a Section 8 tenant would be less than the SAFMR.
To calculate the reimbursement, subtract the tenant's portion and the utility allowance from the SAFMR. If we assume a conservative utility allowance of $450, and the tenant's income is such that their 30% contribution is $800, the government would reimburse the landlord $1730 ($2980 - $800 - $450).
This calculation reveals a significant gap between the SAFMR reimbursement and the local market rent. With the market rent at $3,774, landlords would face a shortfall of $2044 per month ($3,774 - $1730) if they were to charge the market rate. However, landlords can negotiate the rent up to the SAFMR level, which is $2980, without risking the voucher being denied.
In summary, accepting a Section 8 tenant in ZIP 94019 means a landlord will receive a reimbursement of about $1730 per month for a two-bedroom apartment, leading to a monthly reimbursement gap of $1047 ($2980 - $1730) compared to the SAFMR. This gap reflects the economic reality landlords must consider when deciding whether to participate in the Section 8 program in this area.
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.