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 | $2,240 |
| 1 Bedroom | $2,680 |
| 2 Bedrooms | $3,250 |
| 3 Bedrooms | $4,150 |
| 4 Bedrooms | $4,370 |
| 5 Bedrooms | $5,069 |
| 6 Bedrooms | $5,677 |
| 7 Bedrooms | $6,131 |
| 8 Bedrooms | $6,438 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,680 | $680,863 | 0.39% | F |
| 2BR | $3,250 | $1,410,704 | 0.23% | F |
| 3BR | $4,150 | $2,063,056 | 0.2% | F |
U.S. Census Bureau data (2024)
The ZIP code 94108 in San Francisco, CA, is predominantly a renter-heavy area with a population of 11,305, where 89.1% of residents are renters. This high percentage of renters indicates a robust demand for rental properties, including those that accept Section 8 vouchers. The median household income in this ZIP is $65,388, which is notably lower than the average market rent of $2,994 per month.
To put this into perspective, the average market rent consumes approximately 55.6% of the local median monthly income. This calculation is derived from dividing the annual median income ($65,388) by 12 months, yielding a monthly income of about $5,449. Then, dividing the market rent ($2,994) by the monthly income ($5,449) gives us the percentage of income spent on rent. The Federal Market Rent (FMR) for this area is set at $2,870 (FY 2024), indicating that landlords can expect to receive slightly less than the market rent if they participate in the Section 8 program.
A landlord in ZIP 94108 should anticipate a tenant profile that includes individuals and families who rely heavily on Section 8 vouchers due to the significant disparity between median income and market rent. These tenants will likely be seeking affordable housing options and will be sensitive to any additional costs beyond their voucher amount. Given the high proportion of renters and the income levels relative to the cost of living, landlords must be prepared to offer competitive rates to attract and retain tenants.
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.