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 | $3,240 |
| 1 Bedroom | $3,780 |
| 2 Bedrooms | $4,650 |
| 3 Bedrooms | $6,080 |
| 4 Bedrooms | $6,840 |
| 5 Bedrooms | $7,934 |
| 6 Bedrooms | $8,886 |
| 7 Bedrooms | $9,597 |
| 8 Bedrooms | $10,077 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $3,780 | $1,022,834 | 0.37% | F |
| 2BR | $4,650 | $1,830,421 | 0.25% | F |
| 3BR | $6,080 | $3,112,055 | 0.2% | F |
| 4BR | $6,840 | $5,137,657 | 0.13% | F |
| 5BR | $7,934 | $7,722,670 | 0.1% | F |
U.S. Census Bureau data (2024)
The ZIP code 94123 in San Francisco, CA, is predominantly a renter-heavy area, with 69.6% of residents being renters. This high percentage indicates a significant demand for rental properties, including those that accept Section 8 vouchers. The population size of 24,054 supports a robust tenant pool.
The median household income in this ZIP code is $218,603, which is notably higher than the national average. Despite this, the market rent stands at $4,084 per month, suggesting that even in areas with higher incomes, the cost of living can be quite steep. To put this into perspective, the average rent consumes approximately 18.7% of the median household income, calculated by dividing the monthly rent by the annual income and multiplying by 100. This figure is consistent with the financial strain many renters face in high-cost cities like San Francisco.
Comparing the market rent to the Fair Market Rent (FMR) set by HUD for FY 2024, which is $3,930 for this ZIP code, reveals that the market rent slightly exceeds the FMR. This discrepancy means that landlords might find it challenging to attract tenants solely through Section 8 vouchers without offering additional incentives or amenities.
A landlord in ZIP 94123 should expect tenants who are financially savvy and understand the value of affordable housing options. These tenants will likely be aware of the higher-than-average rents and seek out properties that offer a balance between affordability and quality. Given the high percentage of renters and the relatively high median income, there is a strong likelihood of deep voucher demand, but landlords must also be prepared to negotiate or provide competitive offerings to secure tenants.
In summary, ZIP 94123 presents an opportunity for landlords willing to engage with the complexities of a high-rent, high-income urban environment. The demand for rentals is strong, and while voucher usage is likely, landlords should anticipate a mix of tenant profiles seeking affordable yet desirable living spaces.
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.