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 | $3,030 |
| 1 Bedroom | $3,420 |
| 2 Bedrooms | $4,030 |
| 3 Bedrooms | $5,420 |
| 4 Bedrooms | $5,770 |
| 5 Bedrooms | $6,693 |
| 6 Bedrooms | $7,496 |
| 7 Bedrooms | $8,096 |
| 8 Bedrooms | $8,501 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $4,030 | $3,236,799 | 0.12% | F |
| 3BR | $5,420 | $4,126,157 | 0.13% | F |
| 4BR | $5,770 | $4,701,889 | 0.12% | F |
| 5BR | $6,693 | $5,517,674 | 0.12% | F |
U.S. Census Bureau data (2024)
ZIP code 94024, located in Los Altos, California, stands out due to its affluent demographic and high property values. With a population of 23,051, only 12.6% of residents rent their homes, indicating a strong preference for homeownership. The median household income in this area is $250,001, which is significantly above the national average. Additionally, the median home value in ZIP 94024 is $4,731,391, making it one of the most expensive residential areas in the country.
The economic dynamics of Section 8 vouchers in this ZIP code reveal a stark contrast between federally subsidized rents and market rates. For fiscal year 2024, the Fair Market Rent (FMR) for a two-bedroom apartment in ZIP 94024 is set at $4,120. However, the actual Zillow Observed Rent Index (ZORI), which measures market rents, is $7,220 for the same unit. This difference means that landlords accepting Section 8 vouchers in Los Altos would be operating at a significant loss if they rely solely on voucher payments to cover rental costs.
Given the data signature, ZIP 94024 appears to be stable. The high median income and home values suggest a robust local economy with little indication of transitional shifts. While the low percentage of renters might imply limited demand for rental properties, including those participating in the Section 8 program, the substantial disparity between FMR and market rents underscores the financial challenges landlords face when considering participation in the voucher program.
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.