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 | $2,810 |
| 1 Bedroom | $3,360 |
| 2 Bedrooms | $4,070 |
| 3 Bedrooms | $5,200 |
| 4 Bedrooms | $5,800 |
| 5 Bedrooms | $6,728 |
| 6 Bedrooms | $7,535 |
| 7 Bedrooms | $8,138 |
| 8 Bedrooms | $8,545 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $3,360 | $788,381 | 0.43% | F |
| 2BR | $4,070 | $1,456,747 | 0.28% | F |
| 3BR | $5,200 | $2,429,484 | 0.21% | F |
| 4BR | $5,800 | $2,995,579 | 0.19% | F |
| 5BR | $6,728 | $3,705,145 | 0.18% | F |
U.S. Census Bureau data (2024)
The Section 8 market analysis for ZIP code 94402, located in San Mateo, CA, within the San Francisco, CA HUD Metro FMR Area, reveals a favorable environment for landlords and small-portfolio investors. The HUD Fair Market Rent (FMR) for this area is set at $3900 for the fiscal year 2024. In comparison, the market rent, represented by the Zillow Observed Rent Index (ZORI), stands at $3,757. This indicates that voucher tenants can generally cashflow at the HUD FMR rate, providing a buffer for landlords against potential market fluctuations.
To further analyze the investment potential, consider the median home value in ZIP 94402, which is $2,475,155. Using this figure, we can calculate the rent-to-price ratio. The annual rent of $3,757 translates to an annual rent of approximately $45,084, resulting in a rent-to-price ratio of roughly 1.8%. This low ratio suggests that the area is primarily driven by homeownership rather than rental demand, which can be beneficial for long-term investors looking for stability.
The dynamics between rent and buy in this market are also noteworthy. With a median Days on Market (DOM) of N/A and a price-cut share of 0.2%, it's evident that the housing market in San Mateo is highly competitive and stable. These metrics indicate that homes are selling quickly and without significant price reductions, suggesting strong demand for both rentals and purchases. However, given the high median home values, the rental market remains attractive for those who cannot afford to purchase.
The strongest investor angle in ZIP 94402 is stability. The consistent demand for housing, coupled with the ability to cashflow at the HUD FMR rate, provides a solid foundation for investors seeking reliable returns. Additionally, the low price-cut share and quick sales indicate a robust local economy, further supporting the stability of this investment opportunity.
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.