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 | $2,210 |
| 1 Bedroom | $2,420 |
| 2 Bedrooms | $2,970 |
| 3 Bedrooms | $3,800 |
| 4 Bedrooms | $4,500 |
| 5 Bedrooms | $5,220 |
| 6 Bedrooms | $5,846 |
| 7 Bedrooms | $6,314 |
| 8 Bedrooms | $6,630 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,420 | $333,701 | 0.73% | D |
| 2BR | $2,970 | $563,510 | 0.53% | F |
| 3BR | $3,800 | $937,818 | 0.41% | F |
| 4BR | $4,500 | $1,263,488 | 0.36% | F |
| 5BR | $5,220 | $1,404,856 | 0.37% | F |
U.S. Census Bureau data (2024)
Pleasant Hill, CA, located in ZIP code 94523 within the Oakland-Fremont, CA HUD Metro FMR Area, serves as an ideal cash-flow anchor for a Section 8 portfolio strategy. The Fair Market Rent (FMR) for the area in fiscal year 2024 is set at $2840, which is notably higher than the market rent of $2699. This $141 per month spread ensures that landlords participating in the Section 8 program can rely on a consistent, government-backed income that surpasses the typical market rate.
The median home value in Pleasant Hill is $996,089, indicating a relatively high-cost housing market. However, the stability of Section 8 rents provides a reliable cash flow, even in such a market. Landlords can expect a steady stream of rental income without the volatility often associated with market-rate rentals. Furthermore, the low 0.2% price-cut share and a modest 13-day Days on Market (DOM) suggest that the property values are stable and that properties are generally sold quickly, reducing the risk of prolonged vacancy.
While the renter share stands at 37.7%, this does not detract from the cash-flow anchor role of the ZIP. Instead, it highlights the importance of diversification within a broader investment strategy. However, given the choice between cash flow, appreciation potential, and diversification, the strong cash flow provided by the Section 8 program in ZIP 94523 is the most compelling feature. The median household income of $142,586 further supports this position, as it indicates a robust local economy capable of sustaining property values and rental demand over time.
In conclusion, ZIP 94523 should be considered primarily as a cash-flow anchor within a Section 8 portfolio strategy. The $141 monthly premium over market rates, combined with the stability of property values and the strength of the local economy, makes this a reliable investment option for landlords and small-portfolio investors seeking secure and predictable returns.
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.