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 | $2,790 |
| 1 Bedroom | $3,260 |
| 2 Bedrooms | $4,010 |
| 3 Bedrooms | $5,240 |
| 4 Bedrooms | $5,900 |
| 5 Bedrooms | $6,844 |
| 6 Bedrooms | $7,665 |
| 7 Bedrooms | $8,278 |
| 8 Bedrooms | $8,692 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $3,260 | $848,829 | 0.38% | F |
| 2BR | $4,010 | $1,389,300 | 0.29% | F |
| 3BR | $5,240 | $1,995,082 | 0.26% | F |
| 4BR | $5,900 | $3,156,207 | 0.19% | F |
| 5BR | $6,844 | $3,903,178 | 0.18% | F |
U.S. Census Bureau data (2024)
The median income in ZIP code 94117, located in San Francisco, California, stands at $167,066. This figure places it among higher-income areas, yet the market rate rent, known as ZORI, is set at $4,021 per month. To put this into perspective, a household earning the median income would spend approximately 28.8% of their gross monthly income on rent alone if paying the market rate. This suggests that while residents may have high incomes, the cost of living, particularly housing, remains a significant expense.
In contrast, the Fair Market Rent (FMR) for ZIP 94117, which is the standard used for voucher payments in fiscal year 2024, is set at $3,340. This means that for a household receiving a Section 8 voucher, the maximum they would pay towards rent is significantly less than the market rate. The difference between the ZORI and the FMR highlights an affordability gap where many renters might struggle to find housing without financial assistance.
Given that 71.2% of the 36,198 population are renters, the competition for rental properties is intense. Landlords must consider both the number of potential tenants who might be able to pay the market rate and those who rely on Section 8 vouchers. The disparity between the median income and the market rate rent indicates a substantial portion of the population may require some form of subsidy to secure housing.
The takeaway for landlords considering whether to accept voucher payments or focus on cash-paying tenants is clear. While cash-paying tenants might offer higher monthly rents, the reliance on subsidies such as Section 8 vouchers reflects the reality of the local housing market. Accepting vouchers could ensure a steady stream of tenants and reduce vacancy rates, even though it means lower rent compared to the ZORI. However, the decision should also factor in the administrative requirements and potential delays associated with voucher programs.
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.