Section 8 Fair Market Rent (FMR) for ZIP 94521 - 2027

Investment Score for ZIP 94521

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	$2,110
1 Bedroom	$2,310
2 Bedrooms	$2,830
3 Bedrooms	$3,620
4 Bedrooms	$4,290
5 Bedrooms	$4,976
6 Bedrooms	$5,573
7 Bedrooms	$6,019
8 Bedrooms	$6,320

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	$2,310	$271,457	0.85%	C
2BR	$2,830	$391,061	0.72%	D
3BR	$3,620	$765,403	0.47%	F
4BR	$4,290	$894,497	0.48%	F
5BR	$4,976	$1,204,222	0.41%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 94521 (Concord, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 94521, as set by HUD for 2026, is $2950 for a two-bedroom unit. This amount represents 28.1% of the median household income of $125,899. However, the actual rental market in Concord is significantly higher. The Zillow median price for a two-bedroom rental property is $401,668, which translates into a monthly rent that is approximately 11.3 times the FMR. Given these figures, it is clear that the actual rents far exceed the FMR, creating a significant constraint for Section 8 voucher holders. They would struggle to find units that fall within the allowable rent range, especially for larger units like three-bedroom ($3770) and four-bedroom ($4470) apartments. #### Affordability & Renter Profile The population of Concord is 41,909, with 25.7% of residents being renters. This indicates a moderate rental market presence, but the occupancy rate of 96.9% suggests that the market is quite tight. The high occupancy rate combined with the substantial gap between FMR and actual rental prices implies that there is limited availability of affordable housing for low-income renters. The median household income of $125,899 also suggests that the typical resident has a relatively high income, making it challenging for lower-income individuals to find suitable housing without assistance. #### Investor Angle From an investor perspective, the ZIP code 94521 is not cash-flow positive at the FMR levels. For instance, the Zillow median price for a two-bedroom unit is $401,668, which is much higher than the FMR of $2950. This means that investors who purchase properties in this area would need to charge significantly more than the FMR to achieve positive cash flow. Given the tight rental market and the high median household income, there might be opportunities for investors to target higher-income renters who do not rely on Section 8 vouchers. However, this would mean foregoing the benefits of participating in the Section 8 program, such as guaranteed rent payments and a stable tenant base. The investment grade for this ZIP code would likely be considered low for Section 8-focused investors due to the high purchase costs and the difficulty in finding units that meet the FMR criteria. Investors looking to participate in the Section 8 program would face challenges in securing properties that are both affordable and profitable. #### Specific Actionable Insights 1. **Target Higher-Income Renters**: Given the high median household income and the tight rental market, investors should consider targeting higher-income renters who are less likely to require Section 8 vouchers. This could involve purchasing properties and setting rents above the FMR, which would still be competitive in the local market. 2. **Focus on Smaller Units**: Since the FMR for smaller units (one-bedroom and zero-bedroom) is closer to the actual rental prices, investors might find more success in acquiring and renting out smaller units to Section 8 voucher holders. For example, the FMR for a one-bedroom unit is $2420, which is still below the average rental price but might be more feasible compared to larger units. 3. **Consider Renovation Projects**: Investors could look for older properties that can be renovated to meet modern standards and then rented out at slightly higher rates. This strategy could help bridge the gap between the FMR and actual rental prices while providing affordable housing options for low-income families. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 94521 is to **Skip**. The high purchase costs and the significant disparity between FMR and actual rental prices make it difficult to find profitable properties that meet the FMR requirements. Investors should instead focus on areas where the FMR is closer to the actual rental prices, ensuring better cash flow and easier participation in the Section 8 program.

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.