Section 8 Fair Market Rent (FMR) for ZIP 94066 - 2027

Investment Score for ZIP 94066

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$2,490
1 Bedroom	$2,910
2 Bedrooms	$3,580
3 Bedrooms	$4,680
4 Bedrooms	$5,270
5 Bedrooms	$6,113
6 Bedrooms	$6,847
7 Bedrooms	$7,395
8 Bedrooms	$7,765

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$2,910	$449,722	0.65%	D
2BR	$3,580	$958,718	0.37%	F
3BR	$4,680	$1,404,624	0.33%	F
4BR	$5,270	$1,649,093	0.32%	F
5BR	$6,113	$1,741,482	0.35%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 94066 (San Bruno, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 94066 in 2026 is set at $3520 for a two-bedroom unit. However, the actual median rent price for a two-bedroom unit, according to Zillow, is $971,040. This represents a significant disparity, with the actual rent being approximately 23 times higher than the FMR. For voucher holders, this means that the maximum they can pay towards rent is $3520, which is only about 29.9% of the median household income in San Bruno. This constraint makes it extremely difficult for Section 8 voucher holders to find suitable housing in this area, as landlords would be unlikely to accept such low rent payments for units that cost significantly more on the open market. #### Affordability & Renter Profile Given the high median household income of $141,272, the renter population in San Bruno is likely composed of individuals who are financially stable and can afford higher rental rates. The renter percentage is 37.9%, indicating that nearly 40% of the residents are renters. With an occupancy rate of 92.6%, the market is quite tight, suggesting that there is a strong demand for rental properties but limited supply. This tight market condition further exacerbates the affordability issues faced by low-income renters, including those with Section 8 vouchers. #### Investor Angle From an investor perspective, the ZIP code 94066 is not likely to be cash-flow positive at the FMR levels. Given the high actual rent prices, investors would need to charge much more than the FMR to cover their costs and generate a profit. The FMR for a two-bedroom unit is $3520, while the median rent price is $971,040. This implies that an investor would need to charge around $3520 per month to remain within the bounds of accepting Section 8 vouchers, but this amount is far below what the market demands. Therefore, the investment grade for this ZIP code from a Section 8-focused standpoint is poor, as the gap between FMR and market rates is too large to make it financially viable. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Investors should consider focusing on smaller units, such as studios or one-bedroom apartments, where the FMR is lower ($2430 and $2910 respectively). Although these units will still face challenges due to the high market rates, they might have a slightly better chance of attracting tenants with Section 8 vouchers. 2. **Consider Alternative Subsidies**: Given the high market rates, investors might want to explore alternative subsidies or government programs that offer higher rent allowances. This could include other federal, state, or local housing assistance programs that might provide more generous support to low-income renters. 3. **Target Underserved Areas**: Within San Bruno, there might be pockets where the rental market is less competitive and more affordable. Investors should conduct a detailed neighborhood analysis to identify areas where the median rent is closer to the FMR, making it more feasible to attract Section 8 voucher holders. #### Bottom Line Based on the provided data, the recommendation for Section 8-focused investors in ZIP code 94066 is to **skip** this market. The significant gap between the FMR and actual market rent prices makes it highly challenging to find profitable opportunities that align with the constraints of Section 8 vouchers. Investors seeking to capitalize on Section 8 programs would be better served by looking at areas with more aligned FMR and market rates, where the financial viability of such investments is greater.

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.