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 | $2,290 |
| 1 Bedroom | $2,510 |
| 2 Bedrooms | $3,070 |
| 3 Bedrooms | $3,930 |
| 4 Bedrooms | $4,650 |
| 5 Bedrooms | $5,394 |
| 6 Bedrooms | $6,041 |
| 7 Bedrooms | $6,524 |
| 8 Bedrooms | $6,850 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,510 | $396,869 | 0.63% | D |
| 2BR | $3,070 | $553,955 | 0.55% | F |
| 3BR | $3,930 | $1,118,504 | 0.35% | F |
| 4BR | $4,650 | $1,392,075 | 0.33% | F |
| 5BR | $5,394 | $1,760,697 | 0.31% | F |
U.S. Census Bureau data (2024)
Union City (ZIP 94587) sits in the southern East Bay, functioning primarily as a stable, family-centric residential hub with convenient transit links. The neighborhood is characterized by quiet suburban streets and a strong emphasis on education, anchored notably by the presence of New Haven Unified School District, which a local search confirms is a major draw for families seeking quality schooling in Alameda County. Additionally, the area benefits from its proximity to major employment centers and direct access to BART stations, making it a practical location for commuters working throughout the Bay Area.
From a valuation standpoint, the market presents a tight spread between subsidized and market rates. The HUD Fair Market Rent (FMR) for a 2-bedroom unit is set at $3,230, while current market rents (Zillow ZORI) lag slightly at $2,641, creating a notable gap of $589 per month in favor of voucher holders. This subsidized rate significantly exceeds the ZIP-level Small Area Fair Market Rent of $2,820, making 2BR units particularly attractive for the program. Real estate here commands high asset prices, with a median home value of $1,275,379 and a rapid turnover evidenced by a median of just 14 days on market.
Demand drivers are robust, underpinned by a solid economic base. Despite a renter share of 35.3%, the area boasts a high median household income of $133,715, suggesting a tenant pool with financial resilience alongside voucher holders. The combination of highly-rated public schools and reliable BART transit access sustains strong rental demand from working professionals and families alike. This income level and infrastructure indicate a community where voucher tenants can easily integrate without the socioeconomic volatility found in lower-income markets.
The Section 8 verdict for Union City 94587 is a definitive play on premium cash flow and asset stability. The 2BR unit offers the strongest immediate case, where the $3,230 FMR provides a clear cash-flow advantage over the $2,641 market rent. For investors, the strategy is to leverage the high-end FMR against a backdrop of high home values and rapid inventory turnover, securing consistent, government-backed income in a high-demand, affluent suburban enclave.
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.