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 | $2,900 |
| 1 Bedroom | $3,380 |
| 2 Bedrooms | $4,160 |
| 3 Bedrooms | $5,440 |
| 4 Bedrooms | $6,120 |
| 5 Bedrooms | $7,099 |
| 6 Bedrooms | $7,951 |
| 7 Bedrooms | $8,587 |
| 8 Bedrooms | $9,016 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $3,380 | $788,961 | 0.43% | F |
| 2BR | $4,160 | $1,315,336 | 0.32% | F |
| 3BR | $5,440 | $2,176,305 | 0.25% | F |
| 4BR | $6,120 | $4,055,610 | 0.15% | F |
| 5BR | $7,099 | $7,700,695 | 0.09% | F |
U.S. Census Bureau data (2024)
The classification of ZIP 94115 in San Francisco, CA, hinges on the interplay between rental yields and market stability. With a Fair Market Rent (FMR) of $3,490 for fiscal year 2024, it falls below the market rent of $3,714. This suggests a slight underperformance relative to the broader market, but it still offers a decent rental yield considering the median home value stands at $1,431,903.
Stability in the area is indicated by the percentage of renters, which is a robust 74.4%. This high proportion of renters suggests a consistent demand for rental properties, which can translate into steady cash flow for landlords and small-portfolio investors. However, the lack of data on days on market (DOM) introduces some uncertainty regarding how quickly units might turn over, potentially affecting stability.
Average household income in ZIP 94115 is $151,524, which is relatively high and can support higher rents, thus enhancing potential yields. Despite the high income levels, the FMR being lower than the market rent could indicate that there's a segment of the population that finds the housing costs challenging, possibly due to the extremely high home values.
Given these figures, ZIP 94115 leans towards a steady-cashflow zone. The high percentage of renters ensures a stable tenant pool, while the income levels provide a buffer against default risks. Although the FMR is slightly below the market rent, the overall rental environment is favorable for those seeking reliable income streams rather than high-risk, high-reward flipping strategies.
To further solidify this assessment, consider the following points:
In conclusion, ZIP 94115 is best suited for investors looking for a balance between reasonable returns and market stability, rather than rapid appreciation or short-term flips.
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.