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 | $2,080 |
| 1 Bedroom | $2,350 |
| 2 Bedrooms | $2,860 |
| 3 Bedrooms | $3,650 |
| 4 Bedrooms | $4,340 |
| 5 Bedrooms | $5,034 |
| 6 Bedrooms | $5,638 |
| 7 Bedrooms | $6,089 |
| 8 Bedrooms | $6,393 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,860 | $869,111 | 0.33% | F |
| 3BR | $3,650 | $1,353,186 | 0.27% | F |
| 4BR | $4,340 | $1,965,816 | 0.22% | F |
| 5BR | $5,034 | $2,411,760 | 0.21% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP 94526 does not work favorably for landlords. The Fair Market Rent (FMR) set by HUD at $3460 for the fiscal year 2024 is significantly lower than the market rent, which stands at $4,021 as indicated by ZORI. This discrepancy means that landlords participating in the Section 8 program will receive less rent compared to the market rate.
Acquisition in Danville, CA is relatively affordable. With a median home value of $1,791,600, potential investors can expect a reasonable entry point into the market. The 23-day Days on Market (DOM) and a mere 0.2% price-cut share suggest that homes are selling quickly without the need for significant price reductions, indicating a healthy real estate market.
Tenant demand is present but not overwhelming. The ZIP code has a population of 32,584, with 15.9% of residents being renters. While this indicates a pool of potential tenants, the percentage suggests that the majority of residents own their homes, which could impact the availability of rental units.
In summary, while the acquisition cost is manageable and homes sell quickly, the rent math does not align well with market expectations due to the disparity between HUD's FMR and actual market rents. Tenant demand exists but is limited by the high homeownership rate, making it a mixed opportunity for landlords and small-portfolio investors looking to enter the Danville, CA market under 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.