Location: San Jose-Sunnyvale-Santa Clara, 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 | $2,700 |
| 1 Bedroom | $3,120 |
| 2 Bedrooms | $3,790 |
| 3 Bedrooms | $5,000 |
| 4 Bedrooms | $5,540 |
| 5 Bedrooms | $6,426 |
| 6 Bedrooms | $7,197 |
| 7 Bedrooms | $7,773 |
| 8 Bedrooms | $8,162 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $3,790 | $2,414,883 | 0.16% | F |
| 3BR | $5,000 | $3,678,154 | 0.14% | F |
| 4BR | $5,540 | $4,648,776 | 0.12% | F |
| 5BR | $6,426 | $6,007,416 | 0.11% | F |
U.S. Census Bureau data (2024)
ZIP code 94028, Portola Valley, CA, is not a renter-heavy area. With a population of 6,531, only 18.1% are renters, indicating that it is primarily a homeowner-dominated area. The median household income is notably high at $250,001, which contrasts sharply with the market rent of $3,501. This means that typical rent consumes approximately 1.4% of the local median income, suggesting that most residents can afford higher rents without assistance.
The Fair Market Rent (FMR) for this ZIP code, set at $3,570 for FY 2024, is slightly above the current market rent. However, given the high median income, the difference between the FMR and the actual market rent is minimal and unlikely to impact the availability of rental properties significantly. Landlords should anticipate a tenant pool that predominantly consists of individuals or families who can pay market rates without relying on housing vouchers. Those seeking Section 8 tenants would likely find limited demand in this affluent community.
In summary, landlords in ZIP 94028 should expect tenants capable of paying the market rate of $3,501 per month, reflecting the area's high median income. The low percentage of renters and the proximity of market rents to the FMR indicate that the need for housing vouchers is relatively low compared to areas with higher concentrations of renters and lower incomes.
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.