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 | $1,940 |
| 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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,630 | $569,446 | 0.46% | F |
| 3BR | $3,360 | $686,505 | 0.49% | F |
| 4BR | $3,980 | $823,440 | 0.48% | F |
U.S. Census Bureau data (2024)
The Section 8 housing program in ZIP code 94525, which covers Crockett, CA, presents a unique scenario for landlords and small-portfolio investors. The Fair Market Rent (FMR) for the area, set at $2170 for fiscal year 2024, is slightly below the Census ACS reported market rent of $2287. This creates a gap of $117, or approximately 5%, between what voucher holders can pay and the actual market rate.
Given that the FMR is lower than the market rent, landlords should be aware of the financial implications when accepting Section 8 tenants. While the program ensures timely payments and stable occupancy, it also means that landlords will have to accept rents that are below the open-market rates. This could reduce the overall rental yield for properties in the area.
In the context of Crockett, CA, where 43.5% of residents are renters and the median home value stands at $660,911, the decision to participate in the Section 8 program requires careful consideration. With a median income of $110,899, many residents may find themselves qualifying for housing vouchers due to the high cost of living relative to their earnings. However, landlords must weigh the benefits of guaranteed payments against the potential loss of rental income.
To illustrate, if a landlord has a property that could command $2287 in the open market but is willing to accept a Section 8 tenant paying $2170, they are foregoing $117 per month, or about $1404 annually, for each unit. This reduction in revenue needs to be balanced against the stability provided by the voucher program and the local rental market dynamics.
Furthermore, landlords should consider the administrative costs associated with participating in the Section 8 program, such as the application process, inspections, and compliance with HUD regulations. These additional expenses can further impact the net yield of the investment.
In summary, the gap between the FMR and market rent in ZIP 94525 makes accepting Section 8 tenants a trade-off between financial yield and the stability of guaranteed rent payments. Landlords must evaluate these factors in light of the local economic conditions to make informed decisions.
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.