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 | $2,720 |
| 1 Bedroom | $2,980 |
| 2 Bedrooms | $3,650 |
| 3 Bedrooms | $4,670 |
| 4 Bedrooms | $5,530 |
| 5 Bedrooms | $6,415 |
| 6 Bedrooms | $7,185 |
| 7 Bedrooms | $7,760 |
| 8 Bedrooms | $8,148 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $3,650 | $1,145,164 | 0.32% | F |
| 3BR | $4,670 | $1,644,899 | 0.28% | F |
| 4BR | $5,530 | $2,161,985 | 0.26% | F |
| 5BR | $6,415 | $2,831,952 | 0.23% | F |
U.S. Census Bureau data (2024)
The ZIP code 94549, located in Lafayette, California, presents a dynamic real estate market characterized by a strong alignment between Fair Market Rent (FMR) and the Zillow Observed Rental Index (ZORI) at $3,290. This parity suggests that the rental market is stable and reflective of broader economic conditions, indicating neither extreme inflation nor deflationary pressures.
A 0.1% price-cut share signals that landlords and property owners are maintaining their asking rents without significant concessions. The low Days on Market (DOM) of 14 days further supports this notion, showing that properties listed for rent are quickly occupied, a sign of robust demand. These indicators point towards a market where demand likely outpaces supply, keeping vacancy rates low and competition among renters high.
The median home value of $1,940,590 underscores the affluent nature of Lafayette's housing market. While this figure is indicative of the overall desirability and quality of life in the area, it also highlights the potential challenges faced by first-time buyers and those seeking to enter the homeownership market, particularly if they are priced out of the rental market due to its relatively high costs.
The 21.1% renter share provides insight into the long-term housing pressures within the market. A lower percentage of renters relative to homeowners can suggest a trend towards greater housing stability, as homeownership often correlates with longer-term residency. However, it also implies a significant portion of the population is renting, which could be due to high home values making homeownership unattainable for many. This balance creates an environment where rental properties remain in high demand, as they offer a necessary alternative to the expensive homeownership market.
In summary, ZIP 94549 exhibits a market where demand appears to outpace supply, driven by a combination of steady rental prices, quick property turnovers, and a substantial renter base. The dynamics of this market favor landlords and small-portfolio investors who can capitalize on the consistent demand for rental properties, while also recognizing the challenges posed by high median home values.
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.