Section 8 Fair Market Rent (FMR) for ZIP 94561 - 2027

Investment Score for ZIP 94561

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	$1,930
1 Bedroom	$2,150
2 Bedrooms	$2,630
3 Bedrooms	$3,360
4 Bedrooms	$3,980
5 Bedrooms	$4,617
6 Bedrooms	$5,171
7 Bedrooms	$5,585
8 Bedrooms	$5,864

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
2BR	$2,630	$466,027	0.56%	F
3BR	$3,360	$596,935	0.56%	F
4BR	$3,980	$692,268	0.57%	F
5BR	$4,617	$801,726	0.58%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 94561 (Oakley, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 94561, as per the 2026 figures, is set at $2630 for a two-bedroom unit. This amount represents 23.4% of the median household income in Oakley, which stands at $134,678. The FMR is designed to reflect the average rent paid by tenants in the area, but it is important to understand how these figures compare to actual rental prices. Actual rents in Oakley can be significantly higher than the FMR. For instance, the Zillow median price for a two-bedroom home is $465,016, which translates to a monthly mortgage payment of approximately $2100, assuming a 4.5% interest rate and a 20% down payment. However, the price-to-FMR ratio is 14.7x, indicating that the actual rental prices are much higher than the FMR. A typical two-bedroom rental might cost around $3800 per month, based on the price-to-FMR ratio. This means that Section 8 voucher holders face significant constraints in finding suitable housing, as landlords may be reluctant to accept vouchers due to the lower rent compared to market rates. #### Affordability & Renter Profile Oakley has a population of 46,368, with 22.1% of residents being renters. The occupancy rate is high at 96.6%, suggesting a tight rental market. Given the median household income of $134,678, the majority of residents are likely to be middle-class families who can afford market-rate rentals. However, the 22.1% of renters may include individuals or families with lower incomes who rely on assistance programs like Section 8. The affordability of housing is a concern, especially for those with limited financial resources. With the Zillow median price for a two-bedroom home being $465,016, the monthly mortgage payment would be around $2100, but the actual rental price is expected to be closer to $3800. This discrepancy highlights the challenge faced by low-income renters in finding affordable housing. The high occupancy rate also suggests that there is little room for new rental units to enter the market without significant competition, making it a challenging environment for both renters and landlords. #### Investor Angle From an investor's perspective, the ZIP code 94561 presents mixed opportunities. The FMR for a two-bedroom unit is $2630, which is considerably lower than the estimated market rent of $3800. This means that if an investor were to purchase a property and rent it out at the FMR, they would likely not achieve positive cash flow. The price-to-FMR ratio of 14.7x indicates that the actual rental prices are far above the FMR, making it difficult for investors to profit from properties rented exclusively to Section 8 voucher holders. Investors looking to participate in the Section 8 program should consider the following factors: - **Rent Constraints:** Landlords must accept a rent of $2630 for a two-bedroom unit, which is less than half of the potential market rent. - **Investment Grade:** Given the high occupancy rate and strong demand for rentals, the investment grade could be considered good, but only if the investor can find ways to offset the lower rental income. #### Specific Actionable Insights 1. **Focus on Higher-Rent Units:** Investors should focus on properties that can command higher rents, such as three-bedroom or four-bedroom units. The FMR for a three-bedroom unit is $3360, and for a four-bedroom unit, it is $3990. These higher FMRs provide better alignment with market rents, potentially allowing for positive cash flow. 2. **Consider Dual Strategy:** Implementing a dual strategy where some units are rented to Section 8 voucher holders while others are rented at market rates can help balance the financial impact. For example, renting one unit at the FMR of $2630 and another at the market rate of $3800 can create a more sustainable income stream. 3. **Explore Subsidies and Programs:** Investors should explore additional subsidies and programs available to landlords who rent to low-income tenants. These programs can help bridge the gap between FMR and market rents, making Section 8 investments more financially viable. #### Bottom Line Given the high price-to-FMR ratio and the tight rental market, the recommendation for Section 8-focused investors in ZIP code 94561 is to **Skip** purchasing properties solely for Section 8 tenants. Instead, investors should consider a **Hold** strategy, focusing on higher-rent units or implementing a dual strategy to ensure financial sustainability. The high market rents make it challenging to achieve positive cash flow when renting exclusively at the FMR, and the tight market conditions suggest that finding suitable tenants will be competitive.

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.