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 | $2,640 |
| 1 Bedroom | $2,890 |
| 2 Bedrooms | $3,540 |
| 3 Bedrooms | $4,530 |
| 4 Bedrooms | $5,360 |
| 5 Bedrooms | $6,218 |
| 6 Bedrooms | $6,964 |
| 7 Bedrooms | $7,521 |
| 8 Bedrooms | $7,897 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,890 | $426,941 | 0.68% | D |
| 2BR | $3,540 | $693,668 | 0.51% | F |
| 3BR | $4,530 | $1,271,869 | 0.36% | F |
| 4BR | $5,360 | $1,507,361 | 0.36% | F |
| 5BR | $6,218 | $1,666,531 | 0.37% | F |
U.S. Census Bureau data (2024)
Fremont’s 94538 area is defined by its strong suburban character and strategic position within the Silicon Valley periphery. This neighborhood is known for excellent public schools and a diverse, family-friendly atmosphere, bolstered by the presence of major employers like Tesla’s manufacturing facility, which drives significant local economic activity. The area combines residential quiet with convenient access to regional transit, making it a stable, sought-after location for renters.
From a numerical perspective, the HUD FY2026 Fair Market Rent for a 2-bedroom unit stands at $3,680, while the current Zillow market rent is $2,962, creating a negative gap of $718. This suggests that under current conditions, voucher holders may pay more than typical market rates. With median home values at $1,350,094 and properties moving off the market in a swift 14 days, the acquisition cost is steep, requiring a high barrier to entry.
The tenant pool is substantial, with 55.3% of households renting and a median income of $147,301. While voucher demand is present due to the cost burden of housing, the high income indicates that many renters can afford market rates without assistance. The presence of top-tier schools and proximity to tech hubs adds to the desirability, potentially attracting higher-income tenants who compete for the same inventory.
For Section 8 investors, the strongest angle here is not immediate cash flow but long-term appreciation and stability. The $718 rent gap means you are likely capping rent at HUD levels rather than maximizing market returns, but the 14-day days-on-market figure points to high liquidity. If you can secure a property near the Tesla plant or top schools, the asset appreciation potential in this high-value market may outweigh the modest rental constraints.
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.