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 | $2,360 |
| 1 Bedroom | $2,590 |
| 2 Bedrooms | $3,170 |
| 3 Bedrooms | $4,060 |
| 4 Bedrooms | $4,810 |
| 5 Bedrooms | $5,580 |
| 6 Bedrooms | $6,250 |
| 7 Bedrooms | $6,750 |
| 8 Bedrooms | $7,088 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $3,170 | $1,224,172 | 0.26% | F |
| 3BR | $4,060 | $1,648,943 | 0.25% | F |
| 4BR | $4,810 | $2,164,443 | 0.22% | F |
| 5BR | $5,580 | $2,711,114 | 0.21% | F |
U.S. Census Bureau data (2024)
To determine if you should buy in ZIP code 94563 (Orinda, CA) for a Section 8 investment, follow these steps:
1. Does the Fair Market Rent (FMR) of $3,250 cover the debt service on a $1,986,070 property?
Yes. The FMR of $3,250 per month can potentially cover the debt service on a property priced at $1,986,070. To confirm, calculate the monthly mortgage payment based on typical interest rates and loan terms. Assuming a 30-year fixed-rate mortgage at an average rate of 5%, the monthly principal and interest payment would be approximately $10,700. This means that with four units rented at $3,250 each, you could cover about $13,000 in rental income, which exceeds the debt service.
No. If your property has fewer than four units, the FMR of $3,250 per unit may not be sufficient to cover the debt service. For instance, with only two units, you would generate $6,500 in rental income, which falls short of the required $10,700 to cover the debt service on a $1,986,070 property. In this case, consider properties with higher unit counts or lower purchase prices.
It depends. The number of units and their occupancy rate will determine if the FMR of $3,250 can cover the debt service. Ensure that the expected occupancy rate and any potential vacancy losses are factored into your calculations.
2. Is the market rent of $3,501 (Census ACS) above, at, or below the FMR?
Above. The market rent of $3,501 exceeds the FMR of $3,250, indicating that there is potential for higher rental income outside of Section 8. However, Section 8 tenants are guaranteed, which provides stability and reduces risk.
At or Below. If the market rent were closer to or below the FMR, it would suggest that the Section 8 program aligns well with the local rental market, reducing the risk of under-renting. Given that market rent is above FMR, landlords might face a trade-off between higher market rents and the stability of Section 8.
3. Are 8.8% renters and N/A-day days on market (DOM) enough demand?
Yes. With 8.8% of the population being renters, there is a steady demand for rental properties. However, the lack of specific data on days on market (DOM) makes it difficult to assess the speed of property turnover. Assume a competitive market where properties are rented out quickly, making the demand viable for Section 8 investments.
No. If the percentage of renters were significantly lower, or if DOM data indicated long periods before rental properties were leased, it would signal low demand and make Section 8 less attractive. Given the available data, Orinda's rental demand appears sufficient.
It depends. The 8.8% renter rate is a good indicator of demand, but without DOM data, you cannot fully evaluate how quickly properties are leased. Consider additional research on the local rental market dynamics to make a more informed decision.
In conclusion, ZIP code 94563 (Orinda, CA) presents a viable opportunity for Section 8 investments, contingent upon the number of units and the speed of leasing properties. Use the provided data to guide your decision-making process.
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.