Location: San Francisco, CA | Metro: San Francisco, CA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $2,420 |
| 1 Bedroom | $2,830 |
| 2 Bedrooms | $3,480 |
| 3 Bedrooms | $4,550 |
| 4 Bedrooms | $5,120 |
| 5 Bedrooms | $5,939 |
| 6 Bedrooms | $6,652 |
| 7 Bedrooms | $7,184 |
| 8 Bedrooms | $7,543 |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 94104 are straightforward. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code is set at $3620 per month for fiscal year 2024. However, the local market rent, according to the Census ACS, is significantly lower at $773 per month. This discrepancy highlights the financial realities landlords face when participating in the Section 8 program.
To understand how the voucher system works, consider that the total rent for a two-bedroom unit under Section 8 is capped at the SAFMR of $3620. The actual reimbursement received by landlords consists of the difference between the SAFMR and the tenant's portion, which is typically 30% of their income. Additionally, there are utility allowances that can vary but are generally fixed amounts designed to cover typical utility costs.
Let's walk through an example. If a tenant's income is $2000 per month, their portion would be 30%, or $600. Subtracting this from the SAFMR leaves $3020 available for rent reimbursement. Utility allowances, if included, might add another few hundred dollars to this amount, depending on the specifics of the voucher and the local standards.
In practice, this means that landlords in ZIP 94104 will receive a reimbursement closer to the local market rent of $773 rather than the full SAFMR. For instance, if the local utility allowance is $200, the total reimbursement would be around $973. This results in a significant surplus compared to the market rent, allowing landlords to earn more than they would from a non-voucher tenant.
The typical reimbursement gap or surplus in ZIP 94104 for a two-bedroom voucher is substantial. Given the low local market rent, landlords can expect to receive a surplus of approximately $2000 per month over the typical market rate, making participation in the Section 8 program financially attractive despite the administrative complexities.
Data Sources: FMR data from HUD (2027). 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.