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 | $2,650 |
| 1 Bedroom | $3,100 |
| 2 Bedrooms | $3,810 |
| 3 Bedrooms | $4,980 |
| 4 Bedrooms | $5,600 |
| 5 Bedrooms | $6,496 |
| 6 Bedrooms | $7,276 |
| 7 Bedrooms | $7,858 |
| 8 Bedrooms | $8,251 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $3,100 | $797,445 | 0.39% | F |
| 2BR | $3,810 | $1,318,896 | 0.29% | F |
| 3BR | $4,980 | $1,981,279 | 0.25% | F |
| 4BR | $5,600 | $2,620,522 | 0.21% | F |
| 5BR | $6,496 | $2,987,536 | 0.22% | F |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 94061, which includes Redwood City, CA, is set at $3560 for fiscal year 2024. This figure represents the maximum amount that a landlord can charge a Section 8 tenant for rent, but it's important to note that this is not necessarily the actual rent you will receive. The FMR is used to determine the payment standard for Section 8 vouchers, ensuring that tenants can afford housing without being overburdened.
To put this into perspective, the average rent for a two-bedroom apartment in Redwood City, as indicated by the Zillow Observed Rent Index (ZORI), is currently around $3524. This suggests that the FMR closely aligns with market rates, making it a reasonable benchmark for setting your rent. However, keep in mind that the actual rent paid by the tenant might be lower, as they contribute a portion of their income towards the rent.
In Redwood City, approximately 46.0% of residents are renters. This indicates a strong demand for rental properties, particularly those that qualify under the Section 8 program. Given the high renter share, there is a good chance that your property will attract interested tenants who are seeking affordable housing options.
If you're looking to acquire a new property in this area specifically for Section 8 rentals, the median home value in Redwood City is $1,986,728. This is a significant investment, and you should carefully consider whether the long-term benefits of participating in the Section 8 program outweigh the initial costs and potential ongoing administrative requirements.
Before committing to a Section 8 rental, ensure that your property meets all the necessary inspection criteria. The Housing Quality Standards (HQS) set by the government must be satisfied, and this involves a thorough inspection to confirm that your rental unit is safe, decent, and sanitary. Failure to meet these standards could result in denial of participation in the program, so it's crucial to verify compliance beforehand.
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.