Section 8 Fair Market Rent (FMR) for ZIP 94534 - 2027

Investment Score for ZIP 94534

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	$2,160
1 Bedroom	$2,370
2 Bedrooms	$2,990
3 Bedrooms	$3,860
4 Bedrooms	$4,450
5 Bedrooms	$5,162
6 Bedrooms	$5,781
7 Bedrooms	$6,243
8 Bedrooms	$6,555

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
2BR	$2,990	$512,115	0.58%	F
3BR	$3,860	$615,389	0.63%	D
4BR	$4,450	$713,355	0.62%	D
5BR	$5,162	$848,468	0.61%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 94534 (Fairfield, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 94534, as of 2026, is set at $2820 for a two-bedroom unit. This figure represents 24.1% of the median household income in the area, which stands at $140,198. The FMR is intended to reflect the maximum amount that a Section 8 voucher holder can pay for rent. However, the actual rental market in Fairfield is significantly higher, with the Zillow median price for a two-bedroom unit being $517,518. This translates to a price-to-FMR ratio of 15.3x, indicating that the actual rental costs far exceed the FMR. Given these figures, it is clear that there is a substantial gap between what voucher holders can afford and what landlords charge. For instance, a landlord renting a two-bedroom unit at the Zillow median price would be charging nearly 15 times the FMR. This makes it challenging for voucher holders to find suitable housing within their budget constraints. They might have to settle for smaller units or less desirable locations, which could limit their housing options significantly. #### Affordability & Renter Profile In ZIP code 94534, 22.3% of the population are renters, suggesting a moderate demand for rental properties. With a median household income of $140,198, the majority of residents likely have the financial means to purchase homes rather than rent. However, the occupancy rate of 96.9% indicates that most available units are occupied, implying a tight rental market. The high price-to-FMR ratio suggests that the rental market is indeed tight, with few affordable options for low-income renters. This tightness could be due to the relatively high cost of living in the area, coupled with limited supply of lower-cost rental units. Given the median income, it is reasonable to infer that the typical renter in this ZIP code is likely to be middle-class or upper-middle-class individuals who can afford the high rental prices. #### Investor Angle From an investor’s perspective, the FMR of $2820 for a two-bedroom unit is significantly below the actual rental market price. The Zillow median price for a two-bedroom unit is $517,518, which implies that the monthly mortgage payment, even if financed at a low interest rate, would be much higher than the FMR. Assuming a 30-year fixed-rate mortgage at an interest rate of 5%, the monthly mortgage payment on a $517,518 property would be approximately $2845. This is already above the FMR, without considering additional expenses such as property taxes, insurance, maintenance, and utilities. Given these costs, it is unlikely that an investor could achieve positive cash flow by renting at the FMR. The total expenses would likely exceed the FMR, making it financially unviable to rent out properties at this rate. Therefore, the investment grade for this ZIP code, specifically for Section 8-focused investors, is low. Investors would need to consider alternative strategies, such as targeting higher-end rentals or seeking government subsidies beyond the standard Section 8 vouchers, to make a profit. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Since the FMR for a two-bedroom unit is $2820, but the actual rental market price is much higher, investors should consider focusing on smaller units like one-bedroom apartments. The FMR for a one-bedroom unit is $2210, which is still below the median rental price but closer to achieving positive cash flow when factoring in mortgage payments and other expenses. 2. **Target Affordable Housing Projects**: Given the high price-to-FMR ratio, investors might want to explore opportunities in affordable housing projects that receive additional government subsidies. These projects often have higher rent caps and can provide a better return on investment compared to standard Section 8 properties. 3. **Consider Location-Specific Strategies**: Within ZIP code 94534, there might be pockets where rental prices are slightly lower due to factors like proximity to industrial areas or less desirable neighborhoods. Investors could target these areas to find properties that are more aligned with the FMR, thereby improving the chances of positive cash flow. #### Bottom Line Based on the provided data, the recommendation for Section 8-focused investors in ZIP code 94534 is to **skip** this market. The high price-to-FMR ratio and the tight rental market make it difficult to achieve positive cash flow while adhering to the FMR guidelines. Investors looking to enter this market should either focus on smaller units or seek out affordable housing projects that offer higher rent caps. Otherwise, the financial viability of renting at the FMR is questionable, and the investment risk is high.

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.