Location: Oakland-Fremont, CA | Metro: Oakland-Fremont, CA HUD Metro FMR Area
| 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 |
U.S. Census Bureau data (2024)
The ZIP code 94516 is situated in a suburban area of Contra Costa County, California, primarily encompassing parts of the city of Walnut Creek and surrounding neighborhoods. This region is characterized by a relatively affluent demographic, with a median household income of $113,333, placing it well above the national average. The population of 214 suggests a tight-knit community, where approximately 27.6% of residents are renters, indicating a significant but not overwhelming demand for rental properties.
From an investment perspective, the disparity between the Fair Market Rent (FMR) and the actual market rent provides insight into the potential profitability of Section 8 properties in this ZIP code. The FMR for ZIP 94516 is set at $2,410 for the fiscal year 2024, which is notably higher than the Census-reported market rent of $1,292. This discrepancy can be leveraged by investors to secure higher rents through Section 8 vouchers, thereby increasing cash flow from properties that might otherwise yield lower returns in a competitive market environment.
Given these economic factors, ZIP 94516 would likely appeal more to hands-on value-add buyers rather than hands-off operators. The higher FMR compared to the market rent suggests opportunities for property improvements that could justify the increased rent levels supported by Section 8 vouchers. For hands-on investors, the potential exists to renovate properties, thereby attracting tenants willing to pay closer to the FMR, thus maximizing the benefits of the program. On the other hand, hands-off operators might find the management demands of ensuring compliance with Section 8 requirements and maintaining properties to meet higher rent expectations challenging.
Data Sources: FMR data from HUD (2027). 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.