Section 8 Fair Market Rent (FMR) for ZIP 94582 - 2027

Investment Score for ZIP 94582

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	$2,550
1 Bedroom	$2,800
2 Bedrooms	$3,430
3 Bedrooms	$4,390
4 Bedrooms	$5,200
5 Bedrooms	$6,032
6 Bedrooms	$6,756
7 Bedrooms	$7,296
8 Bedrooms	$7,661

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
1BR	$2,800	$437,137	0.64%	D
2BR	$3,430	$688,565	0.5%	F
3BR	$4,390	$1,227,883	0.36%	F
4BR	$5,200	$1,859,085	0.28%	F
5BR	$6,032	$2,327,026	0.26%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 94582 (San Ramon, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 94582 in San Ramon, CA, is set by HUD for 2026. The FMRs are as follows: - 0BR: $2610 - 1BR: $2910 - 2BR: $3550 - 3BR: $4540 - 4BR: $5380 These figures represent the maximum rent that a Section 8 voucher holder can pay. However, comparing these to actual rental prices in the area reveals significant disparities. For instance, the Zillow median price for a 2BR unit is $715,029, which translates to a monthly mortgage payment of approximately $3,000 assuming a 30-year fixed-rate mortgage at a 4.5% interest rate. This means that even the 2BR FMR of $3550 is only about half of what a typical 2BR unit might cost in terms of mortgage payments. The constraints for voucher holders are clear: they would struggle to find units that fall within their budget, especially considering that the FMR for a 2BR unit represents just 19.8% of the median household income ($214,677). This suggests that voucher holders would need to find units priced significantly below the market average to stay within their limits. #### Affordability & Renter Profile The high median household income of $214,677 indicates that the residents of San Ramon are generally affluent. With a renter percentage of 29.7%, it’s evident that a substantial portion of the population chooses to rent rather than own. However, given the high prices of housing in the area, it is likely that many renters are also high-income individuals who can afford the premium rents. The occupancy rate of 98.1% suggests a very tight rental market. There is little vacancy, indicating strong demand for rental properties. This tightness in the market makes it challenging for low-income renters, including those with Section 8 vouchers, to secure affordable housing. #### Investor Angle From an investor perspective, the ZIP code 94582 presents both opportunities and challenges. The high median home value of $715,029 for a 2BR unit implies a robust real estate market, but the price-to-FMR ratio of 16.8x indicates that rental prices are far above the FMR levels. To determine if this ZIP code is cash-flow positive at FMR, we must consider the typical mortgage payment versus the FMR. For a 2BR unit, the FMR is $3550, while the mortgage payment on a median-priced home would be around $3,000. This leaves a small margin for property taxes, insurance, maintenance, and other expenses. Given the high costs associated with owning property in San Ramon, it is unlikely that an investor could achieve positive cash flow solely relying on FMR rates. The investment grade for this ZIP code would be considered high-risk due to the significant gap between FMR and actual rental prices. Investors would need to carefully evaluate their ability to manage properties at a loss or find alternative strategies to make ends meet. #### Specific Actionable Insights 1. **Target Higher-Income Tenants**: Given the high median household income and the tight rental market, investors should focus on attracting higher-income tenants who can afford to pay above FMR. This strategy would help ensure positive cash flow and mitigate the risk of relying solely on Section 8 vouchers. 2. **Consider Property Value Appreciation**: While cash flow may be negative when targeting Section 8 tenants, the high median home values suggest that property appreciation could provide a significant return over time. Investors should weigh the potential for capital gains against the short-term financial strain. 3. **Explore Mixed-Income Developments**: A mixed-income development strategy could allow investors to balance the need for affordable housing with the realities of the high-cost market. By offering a mix of units at different price points, including some at FMR levels, investors can cater to a broader range of tenants while maintaining overall profitability. #### Bottom Line For Section 8-focused investors, the recommendation is to **skip** this ZIP code. The high price-to-FMR ratio and tight rental market make it difficult to find units that are affordable for voucher holders. Additionally, the high costs associated with property ownership in San Ramon mean that achieving positive cash flow at FMR levels is highly improbable. Investors looking to enter this market should consider alternative strategies that do not rely exclusively on Section 8 vouchers to remain financially viable.

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.