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 | $2,390 |
| 1 Bedroom | $2,790 |
| 2 Bedrooms | $3,430 |
| 3 Bedrooms | $4,480 |
| 4 Bedrooms | $5,050 |
| 5 Bedrooms | $5,858 |
| 6 Bedrooms | $6,561 |
| 7 Bedrooms | $7,086 |
| 8 Bedrooms | $7,440 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,790 | $889,560 | 0.31% | F |
| 2BR | $3,430 | $1,415,540 | 0.24% | F |
| 3BR | $4,480 | $2,303,272 | 0.19% | F |
| 4BR | $5,050 | $3,318,111 | 0.15% | F |
| 5BR | $5,858 | $5,908,782 | 0.1% | F |
U.S. Census Bureau data (2024)
The ZIP code 94118 in San Francisco, CA, presents a dynamic rental market with strong indications that demand outpaces supply. The Fair Market Rent (FMR) for the area, set at $3,010 for fiscal year 2024, is significantly lower than the actual market rent, which stands at $3,833. This disparity suggests that the market is robust and landlords can command higher rents above the FMR threshold.
A 0% price-cut share further underscores the strength of demand, indicating that properties are renting without needing to be discounted. The median home value of $2,069,745 is exceptionally high, reflecting the overall expensive nature of the San Francisco real estate market. However, given the high rental rates and low price-cut share, it's evident that the rental sector is particularly vibrant.
The fact that the days on market (DOM) is listed as N/A implies that units are likely being rented quickly, often before they even list online. This rapid turnover is another sign of a tight rental market where supply is insufficient to meet the high demand.
In ZIP 94118, the renter share is notably high at 64.9%. This statistic reveals a significant portion of residents are renters rather than homeowners. Such a high percentage of renters indicates persistent long-term housing pressure, as many individuals and families are unable to purchase homes due to the high median home values. This creates an ongoing need for rental properties, supporting the idea that demand consistently exceeds supply in this area.
The combination of high rental prices, zero price-cut share, and rapid occupancy rates all point towards a market where rental demand is strong and steady. Landlords and small-portfolio investors should take note of these conditions, as they suggest a favorable environment for maintaining or increasing rental income. The high renter share also signals that this trend is likely to continue, driven by the economic and demographic factors characteristic of San Francisco.
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.