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 | $2,590 |
| 1 Bedroom | $2,840 |
| 2 Bedrooms | $3,480 |
| 3 Bedrooms | $4,460 |
| 4 Bedrooms | $5,270 |
| 5 Bedrooms | $6,113 |
| 6 Bedrooms | $6,847 |
| 7 Bedrooms | $7,395 |
| 8 Bedrooms | $7,765 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,840 | $389,362 | 0.73% | D |
| 2BR | $3,480 | $698,077 | 0.5% | F |
| 3BR | $4,460 | $1,346,794 | 0.33% | F |
| 4BR | $5,270 | $1,857,936 | 0.28% | F |
| 5BR | $6,113 | $2,163,742 | 0.28% | F |
U.S. Census Bureau data (2024)
The real estate market in Moraga, CA (ZIP 94556) presents a nuanced scenario for landlords and small-portfolio investors. With a median home value of $1,665,923, the area is characterized by high-end properties that attract a discerning clientele. The fact that only 0.1% of listings have been reduced in price indicates a strong seller's market where pricing power remains firmly in the hands of property owners. This is further supported by a median Days on Market (DOM) of 16 days, suggesting that homes are selling quickly, often before reaching their full price potential.
The rapid turnover and minimal price reductions imply that there is little urgency among sellers to lower their asking prices, thus maintaining a robust position for those looking to sell or hold onto their properties. For landlords, this translates into a stable rental environment where demand for quality housing remains high.
On the rental side, the Federal Market Rent (FMR) for ZIP 94556 in fiscal year 2024 is projected at $3,000. However, the actual Zillow Observed Rent Index (ZORI) stands at $3,925, indicating that market rents significantly outpace government estimates. This suggests that landlords can command higher rents due to the premium nature of the local housing stock and the scarcity of affordable units.
The disparity between FMR and ZORI also points to a potentially lucrative opportunity for long-term investors. As the local economy continues to support high property values, it is reasonable to anticipate that rental rates will follow suit. The current setup supports a steady appreciation in both property value and rental income, making Moraga an attractive location for those planning to hold investments over the next 12-24 months.
However, the market is not without its challenges. High property values and competitive rental rates could limit the pool of potential tenants who are willing or able to pay the prevailing prices. Landlords must remain vigilant in maintaining their properties and ensuring they offer amenities that justify the premium rents. Additionally, the possibility of future economic shifts, such as changes in interest rates or broader market conditions, could impact the stability of both sales and rental prices.
In summary, the combination of high median home values, quick sales, and premium rental rates in Moraga signals a strong market position for property owners. The current dynamics favor holding onto assets with the expectation of continued appreciation, but investors should be prepared for potential fluctuations in the broader economic landscape.
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.