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 | $4,300 |
| 5 Bedrooms | $4,988 |
| 6 Bedrooms | $5,587 |
| 7 Bedrooms | $6,034 |
| 8 Bedrooms | $6,336 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,680 | $527,960 | 0.51% | F |
| 2BR | $3,250 | $835,405 | 0.39% | F |
| 3BR | $4,150 | $980,277 | 0.42% | F |
| 4BR | $4,300 | $1,104,013 | 0.39% | F |
| 5BR | $4,988 | $1,193,023 | 0.42% | F |
U.S. Census Bureau data (2024)
The real estate landscape in ZIP 94124, San Francisco, CA, is poised for stability and potential growth over the next 12-24 months. With a median home value currently at $902,682, the market reflects a high-end residential area where property values are already elevated. The fact that only 0.1% of listings have seen reductions suggests strong seller pricing power. This minimal reduction rate indicates that homes are selling close to their asking prices, a trend likely to continue as demand remains steady.
The median Days on Market (DOM) being listed as N/A further supports the notion of rapid sales, implying homes are selling quickly once listed. This quick turnover and robust pricing power suggest that landlords and small-portfolio investors can expect to maintain or slightly increase rental rates without significant pushback from tenants.
On the rental side, the Forward Monthly Rent (FMR) for ZIP 94124 is set at $2870 for fiscal year 2024, while the actual market rent (ZORI) stands at $4,318. This substantial gap between government-subsidized rent and market rates signals a prime opportunity for landlords who cater to tenants outside the Section 8 program. Investors can leverage the higher market rents to cover costs and generate profit, given the disparity.
For long-term investors, the setup points towards a conservative appreciation thesis. While the immediate market conditions favor sellers and landlords, sustained appreciation will depend on broader economic factors such as job growth, migration patterns, and overall housing demand. However, the current pricing power and rapid sales indicate a resilient market capable of weathering short-term fluctuations.
In summary, ZIP 94124 offers a balanced environment for real estate investment, characterized by strong seller pricing power and a significant gap between subsidized and market rents. Landlords and small-portfolio investors should focus on maintaining competitive rental rates above the FMR but within market norms to ensure steady cash flow and property occupancy.
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.