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 | $2,680 |
| 1 Bedroom | $3,130 |
| 2 Bedrooms | $3,850 |
| 3 Bedrooms | $5,030 |
| 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 |
|---|---|---|---|---|
| 2BR | $3,850 | $1,160,364 | 0.33% | F |
| 3BR | $5,030 | $1,376,761 | 0.37% | F |
| 4BR | $5,660 | $1,632,590 | 0.35% | F |
U.S. Census Bureau data (2024)
The real estate landscape in ZIP 94063, Redwood City, California, is marked by a robust median home value of $1,298,417. This figure underscores the high-end nature of the housing market in the area, which is typically driven by strong economic fundamentals and a desirable location. The fact that only 0.1% of listings have seen price reductions signals a seller's market where homes are generally holding their value or appreciating slightly. This trend, combined with the non-applicable median days on market (DOM), suggests that homes are either selling quickly or the market is so tight that there is little need for prolonged exposure to the market.
On the rental side, the Federal Market Rent (FMR) for ZIP 94063 is set at $3,330 for fiscal year 2024, whereas the actual market rent, as indicated by ZORI (Zillow Observed Rent Index), stands at $3,808. This gap between the FMR and the market rent highlights an opportunity for landlords and small-portfolio investors to capitalize on the discrepancy. The higher market rent suggests that there is a willingness among renters to pay more than the federally benchmarked rate, indicating potential for increased rental income if properties are priced competitively.
For long-term investors, the setup in ZIP 94063 points towards a scenario where appreciation might be limited but stable. The strong seller's market and minimal price reductions suggest that while rapid increases in home values may not occur, the overall trend is likely to maintain steady growth. This stability can provide a reliable basis for investment decisions, especially when coupled with the potential for higher rental yields due to the disparity between FMR and market rents.
In summary, the current median home value, low percentage of price reductions, and the positive spread between market rents and FMRs indicate a market with solid pricing power and a favorable environment for generating rental income. Long-term investors should anticipate a stable appreciation scenario rather than explosive growth, making it a prudent choice for those seeking consistent returns in a resilient market.
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.