Section 8 Fair Market Rent (FMR) for ZIP 94530 - 2027

Location: Oakland-Fremont, CA | Metro: Oakland-Fremont, CA HUD Metro FMR Area

Investment Score for ZIP 94530

Monthly Rent (2BR)

$2,980

Median Price (2BR)

$937,947

1% Rule

0.32%

Annual Yield

3.81%

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	$2,220
1 Bedroom	$2,430
2 Bedrooms	$2,980
3 Bedrooms	$3,820
4 Bedrooms	$4,520
5 Bedrooms	$5,243
6 Bedrooms	$5,872
7 Bedrooms	$6,342
8 Bedrooms	$6,659

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	$2,430	$732,858	0.33%	F
2BR	$2,980	$937,947	0.32%	F
3BR	$3,820	$1,170,675	0.33%	F
4BR	$4,520	$1,424,875	0.32%	F
5BR	$5,243	$1,659,751	0.32%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

26,401

Median Household Income

$128,529

Housing Units

11,437

Renter Percentage

40.8%

Occupancy Rate

96.4%

Renter Occupied

4,492

To determine if purchasing a property in ZIP code 94530 (El Cerrito, CA) for Section 8 investment is advisable, follow this decision tree:

If the Fair Market Rent (FMR) of $2,600 covers the debt service on a $1,139,662 property:
- Yes, proceed to the next question.
If the Zillow Observed Rental Index (ZORI) of $2,539 is above, at, or below the FMR:
- Yes, ZORI is below FMR, which suggests that the rental market is slightly less lucrative than the FMR indicates. Proceed to the final question.
If the percentage of renters is 40.8% and the days on market (DOM) is not available:
- It depends. With 40.8% of residents being renters, there is significant demand for rental properties. However, without DOM data, it's challenging to assess how quickly you can expect to lease a property. If the local real estate market shows that properties typically lease within a reasonable timeframe, then the answer leans towards yes.

The decision hinges on whether the FMR sufficiently covers the debt service. Assuming a conservative mortgage rate of 4%, the annual debt service would be approximately $45,586.48 ($1,139,662 * 0.04), which translates to a monthly debt service of about $3,798.87. The FMR of $2,600 does not cover this debt service, indicating that the investment would not be financially viable under these conditions.

However, if the landlord considers other factors such as potential for property appreciation, government subsidies, or the ability to charge higher rents outside of Section 8, the decision could still be positive despite the initial financial analysis suggesting otherwise.

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.