Location: Oakland-Fremont, CA | Metro: Oakland-Fremont, CA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $2,090 |
| 1 Bedroom | $2,290 |
| 2 Bedrooms | $2,810 |
| 3 Bedrooms | $3,600 |
| 4 Bedrooms | $4,260 |
| 5 Bedrooms | $4,942 |
| 6 Bedrooms | $5,535 |
| 7 Bedrooms | $5,978 |
| 8 Bedrooms | $6,277 |
To classify ZIP code 94557 in Unknown, CA, we need to analyze the given data points related to yield and stability. The Fair Market Rent (FMR) for the area in fiscal year 2024 is $2590. This figure represents the average rent that a landlord can expect to receive for a property in this ZIP code under the Section 8 program. However, there is no specific data provided for the local market rents or home values, which makes direct comparisons challenging.
The lack of detailed market rent and home value data suggests that the area may not have been extensively analyzed, leading to uncertainty regarding the potential yield beyond the FMR. Without these figures, it's difficult to determine if the ZIP code is experiencing higher market rents that could offer a greater yield for landlords willing to participate outside of Section 8.
Regarding stability, the data is also incomplete. There are no percentages of renters, no days on market (DOM) figures, nor any median income data provided for ZIP 94557. These missing pieces are crucial for understanding the financial health and predictability of the rental market in this area.
Given the available data, ZIP 94557 cannot be confidently classified into a high-yield/low-stability flip-style market or a steady-cashflow zone. The presence of an FMR indicates that the ZIP code is eligible for Section 8 assistance, but without comparative market data, it's impossible to assess whether the yield is high relative to the cost of maintaining or acquiring properties in the area. Similarly, the absence of income and rental percentage data means that the stability of the rental market remains unknown.
A prudent approach would be to seek additional market-specific data before making investment decisions. Landlords and small-portfolio investors should consider reaching out to local real estate agents or conducting their own research to fill in the gaps and make informed choices about the potential risks and returns associated with this ZIP code.
Data Sources: FMR data from HUD (2027).
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.