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 | $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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,630 | $498,880 | 0.53% | F |
| 3BR | $3,360 | $654,860 | 0.51% | F |
| 4BR | $3,980 | $741,007 | 0.54% | F |
| 5BR | $4,617 | $807,343 | 0.57% | F |
U.S. Census Bureau data (2024)
The Section 8 cap rate scenario for ZIP code 94572 (Rodeo, CA) can be analyzed using the Fair Market Rent (FMR) and market rent figures. For a two-bedroom property, the annualized FMR is $2170 multiplied by 12, totaling $26,040. The median home value in Rodeo is $654,644. Using these figures, we can calculate the implied gross yield.
In the case of the FMR, the gross yield is calculated as follows:
When considering the market rent of $2,190 per month, which totals $26,280 annually, the calculation changes slightly:
Both scenarios result in an approximate gross yield of 4.0%. However, given the 41.0% renter density in Rodeo, it's important to note that the FMR figure, set by HUD, represents the maximum amount landlords can charge for Section 8 vouchers. This means that while the FMR provides a useful benchmark, it may not always reflect actual rental income due to the nature of Section 8 subsidies and the potential for lower occupancy rates compared to market rents.
The Day on Market (DOM) statistic being N/A suggests either limited data availability or a low turnover rate in the rental market, which could indicate stable occupancy. Landlords should consider that the FMR might not fully account for the costs associated with maintaining properties under the Section 8 program, such as stricter maintenance standards and the administrative burden of dealing with government oversight.
Given the data, the market rent scenario appears more realistic for assessing potential returns, as it reflects the current rental market conditions without the limitations imposed by the Section 8 program. Investors should also factor in the local economic environment and the demand for affordable housing when making decisions about participating in the Section 8 program.
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.