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 | $3,520 |
| 1 Bedroom | $4,100 |
| 2 Bedrooms | $5,050 |
| 3 Bedrooms | $6,600 |
| 4 Bedrooms | $7,430 |
| 5 Bedrooms | $8,619 |
| 6 Bedrooms | $9,653 |
| 7 Bedrooms | $10,425 |
| 8 Bedrooms | $10,946 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $4,100 | $622,550 | 0.66% | D |
| 2BR | $5,050 | $1,044,151 | 0.48% | F |
| 3BR | $6,600 | $1,729,618 | 0.38% | F |
| 4BR | $7,430 | $2,346,353 | 0.32% | F |
| 5BR | $8,619 | $2,639,745 | 0.33% | F |
U.S. Census Bureau data (2024)
ZIP code 94404, located in Foster City, CA, falls within the San Francisco, CA HUD Metro FMR Area. Its Fair Market Rent (FMR) for FY 2024 is set at $4830, which is notably higher than the typical market rent of $3,867 in this ZIP code. This indicates that Foster City is positioning itself as a premium sub-market within the larger San Francisco metro area.
The median home value in 94404 stands at $1,763,667, reflecting the high-end nature of the real estate market there. However, despite the premium property values, 48.8% of residents are renters, a figure that is significantly above the average for the San Francisco, CA HUD Metro FMR Area. This suggests a strong rental demand, which can be beneficial for landlords and small-portfolio investors seeking stable tenant populations and potentially higher rental income compared to the market rent.
The discrepancy between the high FMR and the lower actual market rent could signal an opportunity for landlords who are willing to price their rentals closer to the FMR. This would make their properties more attractive to tenants eligible for Section 8 subsidies, who might otherwise struggle to find affordable housing options within the ZIP code. Additionally, the high renter share combined with below-metro area home values could indicate a sweet spot for Section 8 investments, where rental yields are robust and the risk of vacancy is minimized due to the strong rental demand.
In summary, Foster City's ZIP 94404 represents a premium sub-market within the San Francisco metro area, characterized by high home values and a relatively high renter share. The FMR of $4830 exceeds the current market rent of $3,867, suggesting potential for higher rental pricing that aligns with government subsidy levels. This makes it a strategic location for real estate investment, particularly for those interested in leveraging Section 8 programs.
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.