Section 8 Fair Market Rent (FMR) for ZIP 94518 - 2027
Location: Oakland-Fremont, CA | Metro: Oakland-Fremont, CA HUD Metro FMR Area
Investment Score for ZIP 94518
D
Monthly Rent (2BR)
$2,730
Median Price (2BR)
$349,606
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
FY 2027 Fair Market Rent Rates
| Unit Size |
Monthly FMR |
| Studio | $2,030 |
| 1 Bedroom | $2,230 |
| 2 Bedrooms | $2,730 |
| 3 Bedrooms | $3,500 |
| 4 Bedrooms | $4,140 |
| 5 Bedrooms | $4,802 |
| 6 Bedrooms | $5,378 |
| 7 Bedrooms | $5,808 |
| 8 Bedrooms | $6,098 |
Investment Analysis by Bedroom Size
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms |
Monthly FMR |
Median Price |
1% Rule |
Grade |
| 1BR |
$2,230 |
$275,974 |
0.81% |
C |
| 2BR |
$2,730 |
$349,606 |
0.78% |
D |
| 3BR |
$3,500 |
$796,816 |
0.44% |
F |
| 4BR |
$4,140 |
$988,155 |
0.42% |
F |
| 5BR |
$4,802 |
$1,162,976 |
0.41% |
F |
Demographics & Housing Statistics
U.S. Census Bureau data (2024)
Median Household Income
$112,094
To determine if you should buy in ZIP code 94518 (Concord, CA) for a Section 8 portfolio, follow these steps:
- If your answer to the first question is yes: Does the Fair Market Rent (FMR) of $2,630 cover the debt service on a property valued at $867,942? If the debt service is less than $2,630, then proceed to the next question. This indicates that the rental income can support the mortgage payments.
- If your answer to the first question is no: The FMR of $2,630 does not cover the debt service on a property valued at $867,942. Do not invest in this area unless you can find properties with lower debt service requirements. This would mean the rental income is insufficient to meet the mortgage obligations.
Second question: Is the market rent ($2,556 ZORI) above, at, or below the FMR of $2,630?
- If market rent is below FMR: The ZORI of $2,556 is slightly below the FMR of $2,630. This means that while the FMR might be sufficient to cover expenses, the actual market rents are lower, which could indicate difficulty in finding tenants willing to pay the FMR rate. Proceed with caution.
- If market rent is at or above FMR: The ZORI of $2,556 is close to but below the FMR of $2,630. This suggests that market conditions are favorable for Section 8 tenants, as they can potentially pay closer to the FMR rate. Continue to the third question.
Third question: Are the 30.7% renters and the unknown days on market (DOM) enough demand to support a Section 8 investment?
- If demand is sufficient: With 30.7% of the population renting, there is a reasonable level of demand. However, the lack of data on days on market (DOM) makes it difficult to assess how quickly properties are being rented out. If you can confirm that the DOM is short, then the answer is yes, there is enough demand to support a Section 8 investment.
- If demand is insufficient: If the DOM is long, it suggests that properties take a considerable amount of time to rent, which could indicate low demand or other issues affecting the rental market. In this case, the answer is no, there is not enough demand to justify an investment in this ZIP code for Section 8 purposes.
The decision ultimately hinges on whether the FMR covers your debt service, the relationship between market rent and FMR, and the overall demand for rentals. If all three factors align positively, then investing in ZIP 94518 for Section 8 is advisable. Otherwise, consider alternative locations where the data better supports such investments.
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.