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 | $3,040 |
| 1 Bedroom | $3,550 |
| 2 Bedrooms | $4,370 |
| 3 Bedrooms | $5,710 |
| 4 Bedrooms | $6,430 |
| 5 Bedrooms | $7,459 |
| 6 Bedrooms | $8,354 |
| 7 Bedrooms | $9,022 |
| 8 Bedrooms | $9,473 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $3,550 | $695,397 | 0.51% | F |
| 2BR | $4,370 | $1,101,150 | 0.4% | F |
| 3BR | $5,710 | $1,900,008 | 0.3% | F |
| 4BR | $6,430 | $2,765,234 | 0.23% | F |
| 5BR | $7,459 | $3,122,812 | 0.24% | F |
U.S. Census Bureau data (2024)
ZIP code 94065 is located in the affluent neighborhood of Redwood City, California. This area is characterized by a relatively small population of 11,673 residents, with a significant portion of them being homeowners. Renters make up only 34.1% of the population, indicating a strong preference for homeownership among the local residents. The median household income in this ZIP code is exceptionally high at $215,955, reflecting the economic prosperity of the area. This wealth is further underscored by the median home value, which stands at an impressive $1,870,609, placing it among the most expensive neighborhoods in the region.
The rental market in ZIP 94065 is also notable for its high rents. The Fair Market Rent (FMR) for the fiscal year 2024 is set at $5,040, while the Zillow Observed Rent Index (ZORI) reports a slightly lower market rent of $4,026. These figures suggest a robust demand for rental properties, especially those that qualify under the Section 8 program. However, the gap between FMR and ZORI indicates that there might be some flexibility in negotiating rental rates for Section 8 units, potentially allowing landlords to offer competitive prices without compromising profitability.
Given these economic conditions, ZIP 94065 would be a suitable location for both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the high FMR provides a stable income stream, backed by the economic strength of the area. For value-add buyers, the opportunity to renovate older properties or add amenities could attract higher-paying tenants, leveraging the neighborhood's affluence. Both strategies can benefit from the strong economic fundamentals of ZIP 94065, ensuring a solid investment environment for landlords and small-portfolio investors.
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.