Location: Oakland-Fremont, CA | Metro: Oakland-Fremont, 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 | $1,930 |
| 1 Bedroom | $2,150 |
| 2 Bedrooms | $2,630 |
| 3 Bedrooms | $3,360 |
| 4 Bedrooms | $3,980 |
| 5 Bedrooms | $4,617 |
| 6 Bedrooms | $5,171 |
| 7 Bedrooms | $5,585 |
| 8 Bedrooms | $5,864 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,150 | $404,773 | 0.53% | F |
| 2BR | $2,630 | $521,477 | 0.5% | F |
| 3BR | $3,360 | $693,629 | 0.48% | F |
U.S. Census Bureau data (2024)
A skeptical investor considering Bethel Island, CA (ZIP 94511), might have several concerns regarding the feasibility of renting properties through the Section 8 program. Let's address these objections head-on using available data.
Will FMR $2170 (zip FY 2024) cover the mortgage on a $629,479 home?
The Fair Market Rent (FMR) for ZIP 94511 is set at $2170 for fiscal year 2024. To determine if this amount can cover a mortgage on a home priced at $629,479, we need to consider typical interest rates and loan terms. Assuming a 30-year fixed-rate mortgage at an average rate of 5%, the monthly payment on a $629,479 home would be approximately $3340. This means that the FMR of $2170 falls short by over $1000 per month. However, it's important to note that homes in this price range are likely outliers. The median home value in ZIP 94511 is significantly lower, around $380,000, which would result in a more manageable mortgage payment.
Is there enough renter demand at 35.8%?
The percentage of renter-occupied housing units in ZIP 94511 stands at 35.8%. While this figure is below the national average, it still represents a substantial portion of the housing market. A higher proportion of owner-occupied homes does not necessarily mean less demand for rentals. In fact, areas with significant owner-occupied housing often see steady rental demand from individuals who cannot yet afford to buy or prefer renting. Additionally, the demand for Section 8 rentals specifically can vary and is influenced by factors such as local job markets and social services availability. The data suggests that while the overall rental market is not exceptionally robust, there is still a viable demand for rental properties.
Will vouchers keep pace with $1,606 market rents?
The average market rent in ZIP 94511 is $1606. The question of whether Section 8 vouchers will cover this amount depends on the specific voucher type and the income level of the tenant. Generally, Section 8 vouchers aim to cover a significant portion of the rent, but they are not always sufficient to meet the full market rate, especially in areas with higher costs of living. For instance, if a voucher covers 70% of the rent, it would provide around $1124 towards the $1606 market rent, leaving a gap of nearly $482. This gap must be considered when deciding if a property is financially viable under the Section 8 program. It's also worth noting that the Department of Housing and Urban Development (HUD) periodically adjusts voucher amounts based on cost-of-living changes, though these adjustments do not always align perfectly with market rent increases.
In conclusion, while ZIP 94511 presents some challenges, particularly with regard to covering high mortgage payments and potential gaps between voucher coverage and market rents, there is still a reasonable case for investing in Section 8 properties. Careful consideration of property pricing and understanding the local rental dynamics are key to making informed decisions.
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.