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 | $2,740 |
| 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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $3,190 | $655,475 | 0.49% | F |
| 2BR | $3,930 | $927,215 | 0.42% | F |
| 3BR | $5,140 | $1,385,062 | 0.37% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP 94103 does not favor landlords. The Fair Market Rent (FMR) set at $2870 for the fiscal year 2024 is significantly lower than the actual market rent, which stands at $3972 based on ZORI. This discrepancy means that landlords could be renting below market rates if they adhere strictly to the FMR guidelines.
Acquisition in ZIP 94103 is challenging due to high property values. The median home value is $791,424. With no data available on days on market (DOM) and a negligible 0.1% share of homes needing price cuts, it indicates that the housing market is tight, making it difficult for new investors to enter without substantial capital.
Tenant demand in ZIP 94103 is robust. The area has a population of 34,964, with 80.3% of residents being renters. This high percentage of renters suggests strong competition among tenants, potentially leading to higher occupancy rates for landlords who can offer competitive rents.
In conclusion, ZIP 94103 presents a mixed scenario for landlords and small-portfolio investors. While the potential for high occupancy rates exists due to strong tenant demand, the rent math does not work in favor of landlords when compared to the FMR. Additionally, the high median home value poses significant challenges for acquisition, particularly for those with limited investment capital. Landlords must consider these factors carefully before investing in this area.
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.