Section 8 Fair Market Rent (FMR) for ZIP 94553 - 2027

Investment Score for ZIP 94553

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	$2,030
1 Bedroom	$2,230
2 Bedrooms	$2,730
3 Bedrooms	$3,500
4 Bedrooms	$4,140
5 Bedrooms	$4,802
6 Bedrooms	$5,378
7 Bedrooms	$5,808
8 Bedrooms	$6,098

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	$2,230	$438,480	0.51%	F
2BR	$2,730	$525,954	0.52%	F
3BR	$3,500	$742,293	0.47%	F
4BR	$4,140	$941,140	0.44%	F
5BR	$4,802	$1,108,723	0.43%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 94553 (Martinez, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 94553 in 2026 is set at $2760 for a two-bedroom unit. This figure represents 26.7% of the median household income in the area, which stands at $124,130. However, the actual rent for a two-bedroom unit in Martinez, as indicated by Zillow, is significantly higher at $531,856. The price-to-FMR ratio for a two-bedroom unit is 16.1x, meaning that the actual rent is nearly 16 times the FMR. This stark difference suggests that tenants using Section 8 vouchers would face significant constraints in finding affordable housing. For instance, a voucher holder might struggle to find a landlord willing to accept a voucher that covers only $2760 when the average rent is over $531,856. #### Affordability & Renter Profile The population of Martinez is 48,643, with 27.7% of residents being renters. Given the high median household income and the occupancy rate of 97.3%, it is clear that the rental market in Martinez is quite tight. The high occupancy rate indicates that there is little vacancy, suggesting strong demand for rental properties. The high median household income also implies that many residents can afford higher rents, but those relying on Section 8 vouchers would likely be priced out of the market. The tightness of the market means that landlords have less incentive to accept Section 8 vouchers, as they can easily find tenants willing to pay the full market rate. Additionally, the high rent-to-income ratio makes it challenging for low-income families to secure housing without substantial financial assistance. The median rent for a two-bedroom unit is far above what a typical Section 8 voucher would cover, making it difficult for voucher holders to find suitable accommodation. #### Investor Angle From an investor perspective, the ZIP code 94553 is not cash-flow positive at the FMR levels. With the actual rent for a two-bedroom unit being $531,856 and the FMR being $2760, the gap is too large for most investors to bridge profitably. The high price-to-FMR ratio of 16.1x indicates that the investment grade for this ZIP code is poor for Section 8-focused investors. The cost of maintaining and managing properties at such a high price point, combined with the limited pool of potential Section 8 tenants, makes it a risky investment. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Investors should consider focusing on smaller units, such as one-bedroom apartments, where the FMR is lower at $2260. While still a challenge, the gap between FMR and market rent is slightly narrower, potentially allowing for better cash flow management. 2. **Consider Nearby ZIP Codes**: Given the high cost of living in Martinez, investors might want to look at nearby ZIP codes with lower FMRs and market rents. This could provide a more balanced opportunity for both cash flow and tenant acquisition. 3. **Develop Relationships with Local Agencies**: Building relationships with local housing authorities and agencies can help investors understand the dynamics of the Section 8 program in the area. This can lead to better placement of vouchers and potentially higher occupancy rates. #### Bottom Line For Section 8-focused investors, the ZIP code 94553 presents significant challenges due to the high price-to-FMR ratio and the tight rental market. The recommendation is to **skip** this ZIP code unless you are prepared to focus exclusively on smaller units or explore other areas with more favorable conditions for Section 8 vouchers. The high costs and limited availability of affordable housing make it a less attractive option for this type of investment.

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.