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 | $2,420 |
| 1 Bedroom | $2,680 |
| 2 Bedrooms | $3,260 |
| 3 Bedrooms | $4,170 |
| 4 Bedrooms | $4,950 |
| 5 Bedrooms | $5,742 |
| 6 Bedrooms | $6,431 |
| 7 Bedrooms | $6,945 |
| 8 Bedrooms | $7,292 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $3,260 | $619,329 | 0.53% | F |
| 3BR | $4,170 | $889,923 | 0.47% | F |
| 4BR | $4,950 | $1,116,365 | 0.44% | F |
| 5BR | $5,742 | $1,300,273 | 0.44% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP 94517, Clayton, CA, within Contra Costa County, are straightforward when analyzed with the specific figures at hand. For a two-bedroom apartment, the SAFMR (Small Area Fair Market Rent) for FY 2024 is set at $3890. This SAFMR is unique to this specific ZIP code, reflecting the local rental market conditions more accurately than a broader county-wide figure would.
However, the local market rent for a similar unit is recorded at $3,501 according to the Census ACS data. This means that landlords in ZIP 94517 can potentially receive a higher rent subsidy than the average market rate for their properties, depending on the specifics of the voucher and the tenant's income.
A Section 8 voucher payment to landlords consists of two parts: the tenant contribution and the government subsidy. The tenant contribution is generally 30% of their adjusted monthly income. If we assume an average adjusted monthly income for a tenant in this area, the calculation would look something like this:
If a tenant's adjusted monthly income is $1,000, their contribution towards rent would be $300 (30%). The government then covers the remaining portion up to the SAFMR limit of $3890. Therefore, the landlord would receive $3590 from the government ($3890 - $300).
In addition to the base rent subsidy, there are utility allowances which vary but are typically around $200-$300 per month. These allowances are designed to help cover the costs of utilities such as electricity, gas, water, and sewage. The exact amount depends on the household size and location.
Taking the average utility allowance of $250 into account, the total reimbursement a landlord could expect from the government for a two-bedroom apartment would be $3840 ($3590 + $250). This exceeds the local market rent of $3,501, indicating a potential surplus for landlords participating in the program.
The typical surplus for a two-bedroom voucher in ZIP 94517 is thus $339 ($3840 - $3501). This surplus can provide landlords with additional financial stability and predictability, as the government guarantees a certain level of rent payment regardless of the tenant's ability to pay the full amount.
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.