Location: San Jose-Sunnyvale-Santa Clara, CA | Metro: San Jose-Sunnyvale-Santa Clara, 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 | $3,010 |
| 1 Bedroom | $3,350 |
| 2 Bedrooms | $3,990 |
| 3 Bedrooms | $5,330 |
| 4 Bedrooms | $5,660 |
| 5 Bedrooms | $6,566 |
| 6 Bedrooms | $7,354 |
| 7 Bedrooms | $7,942 |
| 8 Bedrooms | $8,339 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $3,350 | $1,220,300 | 0.27% | F |
| 2BR | $3,990 | $1,934,834 | 0.21% | F |
| 3BR | $5,330 | $4,328,286 | 0.12% | F |
| 4BR | $5,660 | $5,392,349 | 0.1% | F |
| 5BR | $6,566 | $6,819,488 | 0.1% | F |
U.S. Census Bureau data (2024)
The ZIP code 94022, located in Los Altos, CA, has a population of 20,027 residents, with 18.3% being renters. This indicates that it is primarily a homeowner-dominated area rather than a renter-heavy zone. The median household income stands at $250,001, which places it well above the national average.
In terms of rental market dynamics, the typical market rent in this area is $6,419 per month. This represents approximately 25.7% of the median household income when considering a two-person household sharing expenses. Given that the Fair Market Rent (FMR) for FY 2024 is set at $4,380, it is evident that the actual market rent significantly exceeds the FMR, indicating a strong demand for rental properties and potentially higher competition for tenants.
The disparity between the FMR and the actual market rent suggests that vouchers might be less common among potential tenants. However, the demand for housing assistance could still be substantial given the high cost of living in the area. Landlords should anticipate a tenant pool that includes individuals and families who may require housing vouchers to afford the rent but will likely also need to contribute additional funds to meet the market rate.
To summarize, while ZIP 94022 leans towards homeownership, there is still a notable presence of renters. The high market rent relative to the FMR points to an environment where tenants using vouchers will have to supplement their payments to match the $6,419 monthly rent. Landlords should prepare for a mix of tenants seeking financial assistance alongside those who can pay the full market price without subsidies.
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.