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 | $2,690 |
| 1 Bedroom | $3,140 |
| 2 Bedrooms | $3,870 |
| 3 Bedrooms | $5,060 |
| 4 Bedrooms | $5,690 |
| 5 Bedrooms | $6,600 |
| 6 Bedrooms | $7,392 |
| 7 Bedrooms | $7,983 |
| 8 Bedrooms | $8,382 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $3,140 | $1,444,710 | 0.22% | F |
| 2BR | $3,870 | $1,734,793 | 0.22% | F |
| 3BR | $5,060 | $2,432,534 | 0.21% | F |
| 4BR | $5,690 | $3,400,517 | 0.17% | F |
| 5BR | $6,600 | $4,616,323 | 0.14% | F |
U.S. Census Bureau data (2024)
The potential risks for a Section 8 investment in ZIP code 94062, Emerald Lake Hills, CA, must be carefully considered. Firstly, tenant turnover could pose a significant challenge due to the difference between the market rent of $3,594 and the Fair Market Rent (FMR) of $3,370 for fiscal year 2024. This gap suggests that tenants might find it difficult to afford the higher market rents without assistance, leading to higher turnover rates.
Vacancy exposure is another concern, as the days on market (DOM) data is currently unavailable. Without this information, it's challenging to predict how long it might take to fill vacancies, which can impact cash flow and overall profitability.
Deferred maintenance poses a risk given the typical home value of $2,694,649 and the median income of $233,262. Landlords may face challenges in maintaining properties at a high standard while operating within the constraints of Section 8 payment standards, which are often lower than market rates. This can lead to deferred maintenance, where necessary repairs and upgrades are postponed due to financial limitations.
However, these risks are offset by the high renter share of 27.3%. A larger proportion of renters typically indicates a higher demand for rental housing, including those who rely on Section 8 vouchers. This robust demand can help ensure steady occupancy rates and mitigate some of the risks associated with vacancy and turnover.
Verdict: Moderate risk for a first-time Section 8 landlord in ZIP 94062.
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.