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 | $2,670 |
| 1 Bedroom | $3,120 |
| 2 Bedrooms | $3,840 |
| 3 Bedrooms | $5,020 |
| 4 Bedrooms | $5,650 |
| 5 Bedrooms | $6,554 |
| 6 Bedrooms | $7,340 |
| 7 Bedrooms | $7,927 |
| 8 Bedrooms | $8,323 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $3,120 | $773,874 | 0.4% | F |
| 2BR | $3,840 | $1,461,472 | 0.26% | F |
| 3BR | $5,020 | $2,409,667 | 0.21% | F |
| 4BR | $5,650 | $3,059,361 | 0.18% | F |
| 5BR | $6,554 | $3,539,529 | 0.19% | F |
U.S. Census Bureau data (2024)
In ZIP 94070, which encompasses San Carlos, CA, within San Mateo County, the economics of Section 8 housing can be analyzed using the SAFMR (Section 8 Area Fair Market Rent) and local market rent data. For a two-bedroom apartment, the SAFMR for FY 2024 is set at $3650. This figure represents the maximum amount that the Housing Choice Voucher program will pay towards the rent for a unit of this size in this specific ZIP code. In contrast, the local market rent, as measured by ZORI (Zillow Observed Rental Index), is $4,003.
The SAFMR is not the only factor in determining what a landlord receives from a Section 8 voucher. Tenants are required to contribute a portion of their income towards the rent, typically 30% of their adjusted monthly income. Additionally, there are utility allowances that vary based on the size of the unit and the region. For ZIP 94070, the utility allowance for a two-bedroom apartment is $400 per month. This allowance is separate from the rent and directly reimbursed to the tenant by the housing authority.
To illustrate, if a tenant's contribution is $1,000 (this would be 30% of an income around $3,333), then the total reimbursement to the landlord for a two-bedroom apartment would be the sum of the tenant's contribution and the voucher payment, capped at $3650. Therefore, the landlord would receive a maximum of $4,050 ($1,000 + $3,050) per month, where $3,050 is the difference between the SAFMR and the tenant's contribution. It is important to note that the voucher payment cannot exceed the SAFMR, even if the tenant's contribution is less than expected.
The reimbursement gap or surplus can be calculated by comparing the total reimbursement to the landlord against the local market rent. In this case, the local market rent for a two-bedroom apartment is $4,003. Given that the landlord receives a maximum of $4,050, there is a slight surplus of $47 above the market rate. However, this surplus is contingent upon the tenant's income being low enough to allow the full SAFMR to be paid out by the voucher program. If the tenant's income is higher, their contribution will increase, reducing the amount subsidized by the voucher program and potentially creating a gap between the market rent and the total reimbursement.
In summary, landlords in ZIP 94070 should expect a maximum reimbursement of $3650 for a two-bedroom apartment under the Section 8 program, plus the tenant's contribution. This setup generally results in a minor surplus when compared to the local market rent, but the exact amount depends on the tenant's income. Landlords must ensure that the rent they charge does not exceed the SAFMR to avoid losing out on potential tenants who rely on vouchers.
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.