Section 8 Fair Market Rent (FMR) for ZIP 94550 - 2027

Investment Score for ZIP 94550

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	$2,380
1 Bedroom	$2,610
2 Bedrooms	$3,200
3 Bedrooms	$4,100
4 Bedrooms	$4,850
5 Bedrooms	$5,626
6 Bedrooms	$6,301
7 Bedrooms	$6,805
8 Bedrooms	$7,145

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	$2,610	$368,856	0.71%	D
2BR	$3,200	$706,266	0.45%	F
3BR	$4,100	$1,070,827	0.38%	F
4BR	$4,850	$1,399,018	0.35%	F
5BR	$5,626	$1,960,859	0.29%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 94550 (Livermore, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 94550 is set by HUD for 2026 as follows: - 0BR: $2430 - 1BR: $2700 - 2BR: $3300 (which represents 22.0% of the median household income) - 3BR: $4220 - 4BR: $5000 To understand how these figures compare to actual rents, we need to consider the occupancy rate and the percentage of renters in the area. With a 95.2% occupancy rate and 26.5% of the population renting, it indicates that there is a high demand for rental properties. However, the FMRs are significantly lower than the actual market rents, which can be seen through the Zillow median price for a 2BR property at $719,889. This suggests that the FMRs are not reflective of the true cost of renting in Livermore, making it challenging for Section 8 voucher holders to find affordable housing. The constraints for voucher holders include limited options due to the high price-to-FMR ratio, which stands at 18.2x. This means that landlords who accept Section 8 vouchers would have to rent their properties at a rate that is only about 5.5% of the median home value, which is likely not sufficient to cover their costs. #### Affordability & Renter Profile Given the median household income of $180,295, the 2BR FMR of $3300 is only 22.0% of the median income. This implies that the typical resident in Livermore can afford to pay much more than the FMR for a 2BR unit. The high median income also suggests that the majority of residents are financially stable and can handle higher rent prices. However, the 26.5% of the population that rents indicates that there is still a significant portion of the community that relies on rental housing. The high occupancy rate of 95.2% points to a tight rental market where supply is low relative to demand. This tightness makes it difficult for renters, especially those with Section 8 vouchers, to find suitable housing within their budget. #### Investor Angle From an investor's perspective, the ZIP code 94550 presents a challenging environment for cash flow if they are relying solely on FMR rates. The Zillow median price for a 2BR unit is $719,889, while the FMR is $3300 per month. Given the price-to-FMR ratio of 18.2x, it is clear that the rental income at FMR levels would not be enough to cover mortgage payments, maintenance costs, and other expenses associated with owning a property in this area. Investment-grade properties in this ZIP code would need to be priced at a level that provides a reasonable return on investment. Considering the high median home values and the tight rental market, properties that can command higher rents will be more attractive to investors. However, the challenge lies in finding tenants willing to pay the FMR rates, which are far below the market average. #### Specific Actionable Insights 1. **Focus on Higher-Rent Properties**: Investors should focus on properties that can command higher rents above the FMR. For example, a 2BR unit renting at $3300 per month is only 22.0% of the median income, but a 3BR unit renting at $4220 might be more feasible given the financial stability of the typical resident. This could help ensure better cash flow and profitability. 2. **Consider Non-Section 8 Tenants**: Given the high median income and the tight rental market, investors might want to consider targeting non-Section 8 tenants who can afford higher rents. This would likely provide a more sustainable and profitable investment opportunity. 3. **Evaluate Property Costs**: Before investing, evaluate the total costs associated with owning a property in this ZIP code, including mortgage payments, property taxes, insurance, and maintenance. If the FMR is insufficient to cover these costs, it might be best to look elsewhere for investment opportunities. #### Bottom Line For Section 8-focused investors, the ZIP code 94550 (Livermore, CA) is a challenging market due to the high price-to-FMR ratio and the tight rental market. The recommendation would be to **Skip** this ZIP code for Section 8 investments unless you can secure properties at significantly lower purchase prices or find ways to increase the rental income beyond the FMR. Instead, consider areas with lower price-to-FMR ratios and more relaxed rental markets to ensure better cash flow and investment returns.

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.