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 | $2,640 |
| 1 Bedroom | $2,900 |
| 2 Bedrooms | $3,550 |
| 3 Bedrooms | $4,550 |
| 4 Bedrooms | $5,380 |
| 5 Bedrooms | $6,241 |
| 6 Bedrooms | $6,990 |
| 7 Bedrooms | $7,549 |
| 8 Bedrooms | $7,926 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,900 | $407,855 | 0.71% | D |
| 2BR | $3,550 | $606,415 | 0.59% | F |
| 3BR | $4,550 | $1,232,596 | 0.37% | F |
| 4BR | $5,380 | $1,537,103 | 0.35% | F |
| 5BR | $6,241 | $1,992,513 | 0.31% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP 94583, San Ramon, CA, are structured around the federal Fair Market Rent (SAFMR) and the local market rent rates. For a two-bedroom apartment, the SAFMR for fiscal year 2024 is set at $3330. This figure represents the maximum amount that the government will pay towards a rental subsidy for this specific ZIP code. However, the local market rent, as indicated by the Zillow Observed Rent Index (ZORI), stands at $2,769 for the same type of unit.
A landlord participating in the Section 8 program receives a voucher payment from the government on behalf of eligible tenants. The voucher payment covers a significant portion of the rent but not the entire amount. Tenants are required to contribute a portion of their income towards the rent, typically around 30%. In addition to the rent, there are utility allowances which vary based on the size of the unit and the location. For ZIP 94583, these allowances are designed to cover the average cost of utilities in the area.
To illustrate, if a landlord sets the rent for a two-bedroom apartment at the SAFMR level of $3330, the government will pay up to $3330 minus the tenant's contribution. Assuming the tenant contributes 30% of their income, and if we take the ZORI as a proxy for average income levels, the tenant would pay approximately $831 towards the rent ($2,769 * 30%). The remaining $2,499 would be covered by the voucher. If the landlord sets the rent below the SAFMR, say at $2,769, the government would still pay up to $3330 minus the tenant's contribution, which would result in a higher reimbursement for the landlord.
Utility allowances in ZIP 94583 are calculated separately and added to the voucher payment. These allowances can range from $200 to $300 per month depending on the specifics of the unit and the utility costs in the area. Therefore, if a landlord sets the rent at $2,769 and includes utilities, the total reimbursement could reach close to the SAFMR of $3330, covering the rent and utilities.
In ZIP 94583, landlords who participate in the Section 8 program and set their rents at the local market rate of $2,769 can expect a reimbursement that closely matches or slightly exceeds the market rent due to the combination of the voucher payment and utility allowances. This means there is generally a surplus rather than a gap between the reimbursement and the local market rent. Landlords who set their rents above the local market rate but below the SAFMR will still receive a substantial portion of the rent covered by the voucher, although they might not achieve the full SAFMR reimbursement unless the rent is set exactly at that level.
In summary, for a two-bedroom apartment in ZIP 94583, the typical reimbursement gap or surplus leans towards a surplus when the rent is set at the local market rate. Landlords should consider setting their rents at or slightly below the ZORI level of $2,769 to maximize their returns while ensuring the property remains attractive to Section 8 tenants.
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.