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 | $2,490 |
| 1 Bedroom | $2,910 |
| 2 Bedrooms | $3,580 |
| 3 Bedrooms | $4,680 |
| 4 Bedrooms | $5,270 |
| 5 Bedrooms | $6,113 |
| 6 Bedrooms | $6,847 |
| 7 Bedrooms | $7,395 |
| 8 Bedrooms | $7,765 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,910 | $542,008 | 0.54% | F |
| 2BR | $3,580 | $991,229 | 0.36% | F |
| 3BR | $4,680 | $1,401,011 | 0.33% | F |
| 4BR | $5,270 | $1,698,790 | 0.31% | F |
| 5BR | $6,113 | $1,821,097 | 0.34% | F |
U.S. Census Bureau data (2024)
ZIP 94401, located within the San Mateo, CA, San Francisco, CA HUD Metro FMR Area, offers a unique opportunity for inclusion in a Section 8 portfolio strategy. This area serves best as an appreciation play due to its favorable market conditions.
The Fair Market Rent (FMR) for ZIP 94401 in fiscal year 2024 is set at $3220. In comparison, the market rent stands slightly lower at $3105. This suggests that Section 8 tenants would pay close to the market rate, making the property competitive even outside the Section 8 program. The median home value of $1,219,990 indicates a high-end market, which aligns well with the relatively high FMR.
ZIP 94401's 0.2% price-cut share and 16-day Days on Market (DOM) are key indicators supporting its role as an appreciation play. The low price-cut share implies that properties in this area rarely go on sale at a discount, suggesting strong demand and stability in property values. A short DOM of 16 days further underscores the robust local real estate market, where listings move quickly, often without significant price reductions. These factors point to a scenario where property values are likely to appreciate over time, providing long-term gains for investors.
While ZIP 94401 could also serve as a diversifier given its 56.6% renter share and median income of $122,227, the primary focus should be on its potential for appreciation. The high median income supports the ability of residents to afford higher rents, which can translate into higher rental rates over time as the market adjusts. Additionally, the significant renter share ensures a steady demand for rental properties, reducing the risk of vacancy and stabilizing cash flows.
In summary, ZIP 94401 is best positioned as an appreciation play within a Section 8 portfolio strategy. Its stable market conditions, quick sales, and high-income demographics make it a reliable choice for long-term investment growth.
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.