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 | $2,810 |
| 1 Bedroom | $3,080 |
| 2 Bedrooms | $3,770 |
| 3 Bedrooms | $4,830 |
| 4 Bedrooms | $5,710 |
| 5 Bedrooms | $6,624 |
| 6 Bedrooms | $7,419 |
| 7 Bedrooms | $8,013 |
| 8 Bedrooms | $8,414 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $3,770 | $693,166 | 0.54% | F |
| 3BR | $4,830 | $1,292,156 | 0.37% | F |
| 4BR | $5,710 | $1,557,783 | 0.37% | F |
| 5BR | $6,624 | $2,468,143 | 0.27% | F |
U.S. Census Bureau data (2024)
The classification of ZIP 94588, located in Pleasanton, CA, hinges on the interplay between its yield potential and stability metrics. With a Fair Market Rent (FMR) of $3,510 for the fiscal year 2024, it stands above the local market rent of $2,927. This indicates a higher potential for rental income compared to typical market rates, suggesting a decent yield. However, the median home value of $1,449,329 is significantly higher, which implies that the cost basis for acquiring properties is substantial.
Stability in this area is characterized by a moderate percentage of renters at 36.9%. While this figure suggests a reasonable demand for rentals, the lack of data on days on market (DOM) and the relatively high median household income of $191,073 point towards a stable market environment. High incomes generally correlate with lower tenant turnover and better credit profiles, contributing to long-term stability.
Considering these factors, ZIP 94588 does not fit neatly into a high-yield/low-stability 'flip-style' market category. Instead, it leans more toward a steady-cashflow zone due to its stable renter demographics and robust economic indicators. The significant gap between FMR and median home values means that while yields can be attractive, they come with a higher initial investment risk. This makes it less suitable for quick flips and more appropriate for investors seeking consistent returns over time.
To summarize, the key figures driving this assessment are the FMR exceeding market rents, indicating a good yield, and the presence of a stable economic base, evidenced by the high median income, which supports long-term cash flow stability. For small-portfolio investors and landlords, this suggests a balanced approach is needed—capitalizing on the higher rental yields while managing the risks associated with the high property values.
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.