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 | $2,620 |
| 1 Bedroom | $2,870 |
| 2 Bedrooms | $3,520 |
| 3 Bedrooms | $4,510 |
| 4 Bedrooms | $5,330 |
| 5 Bedrooms | $6,183 |
| 6 Bedrooms | $6,925 |
| 7 Bedrooms | $7,479 |
| 8 Bedrooms | $7,853 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $3,520 | $804,567 | 0.44% | F |
| 3BR | $4,510 | $1,179,103 | 0.38% | F |
| 4BR | $5,330 | $1,430,150 | 0.37% | F |
| 5BR | $6,183 | $1,690,976 | 0.37% | F |
U.S. Census Bureau data (2024)
The ZIP code 94552, located in Castro Valley, California, presents an interesting scenario when viewed from the renter’s perspective. The median household income here is $212,605, which initially suggests a strong financial standing among residents. However, the market rate rent, known as the Zillow Observed Rent Index (ZORI), stands at $4,200. This figure represents a significant portion of the average monthly income, making it challenging for many households to afford market-rate rents without assistance.
To put this into context, let’s consider the Federal Market Rent (FMR) for ZIP 94552 in fiscal year 2024, which is set at $3,890. This is the standard payment amount for housing vouchers in the area. The difference between the ZORI and the FMR is substantial, indicating a notable affordability gap for renters. At 6.8% of the total population being renters, the competition for rental properties is relatively low compared to other areas, but the affordability gap means that landlords must be strategic in their pricing and tenant selection.
The takeaway for landlords considering whether to accept voucher payments or focus on cash-paying tenants is clear. While cash-paying tenants might offer higher rental income, the reality of the affordability gap in Castro Valley means that accepting vouchers could provide a steady and reliable stream of income. Additionally, with a lower percentage of renters, landlords who accept vouchers can potentially attract a broader range of tenants, ensuring that their properties remain occupied and generating consistent revenue.
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.