Location: San Francisco, CA | Metro: San Francisco, CA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $2,740 |
| 1 Bedroom | $3,190 |
| 2 Bedrooms | $3,930 |
| 3 Bedrooms | $5,140 |
| 4 Bedrooms | $5,780 |
| 5 Bedrooms | $6,705 |
| 6 Bedrooms | $7,510 |
| 7 Bedrooms | $8,111 |
| 8 Bedrooms | $8,517 |
The economics of Section 8 housing in ZIP code 94064, located in San Francisco County, are straightforward when you understand the SAFMR (Small Area Fair Market Rent) and how it interacts with the local rental market and tenant contributions.
The SAFMR for a two-bedroom apartment in ZIP 94064 for fiscal year 2024 is set at $3600. This figure represents the maximum amount that the Housing Choice Voucher program will reimburse landlords for renting their properties to eligible tenants. It's important to note that this SAFMR is specific to this ZIP code and reflects the unique cost of living in this area.
Tenants who participate in the Section 8 program are required to pay 30% of their adjusted income toward rent. For example, if a tenant's monthly income is $2000, they would pay $600 towards rent. The remaining balance, up to the SAFMR limit, is covered by the government voucher. In addition to the base rent, there are utility allowances which can vary but typically do not exceed a few hundred dollars per month. These allowances are also part of the total reimbursement package.
To illustrate, let's assume a tenant's contribution is $600, and the utility allowance is $150. The total reimbursement from the government would be $750 ($600 tenant contribution + $150 utilities). If the SAFMR is $3600, then the government would cover the difference between the tenant's contribution and the SAFMR, which in this case would be $2850. Therefore, the landlord would receive a total of $3600 per month for a two-bedroom unit.
The reimbursement gap or surplus depends on the actual market rent for a two-bedroom unit in ZIP 94064. Since the local market rent is currently unavailable, it's crucial to keep an eye on the trends. If the market rent exceeds the SAFMR, landlords might face a shortfall. Conversely, if the market rent is lower than the SAFMR, landlords could see a surplus.
In conclusion, understanding the SAFMR and how it applies to your property is key to managing expectations regarding rental income. Landlords should also consider the stability of having a government-backed voucher covering a significant portion of the rent, which can be advantageous over relying solely on the fluctuating local rental market rates.
Data Sources: FMR data from HUD (2027).
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.