Location: Vallejo, CA | Metro: Vallejo, CA MSA
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 | $1,720 |
| 1 Bedroom | $1,890 |
| 2 Bedrooms | $2,360 |
| 3 Bedrooms | $3,080 |
| 4 Bedrooms | $3,510 |
| 5 Bedrooms | $4,072 |
| 6 Bedrooms | $4,561 |
| 7 Bedrooms | $4,926 |
| 8 Bedrooms | $5,172 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,890 | $180,391 | 1.05% | B |
| 2BR | $2,360 | $308,293 | 0.77% | D |
| 3BR | $3,080 | $497,813 | 0.62% | D |
| 4BR | $3,510 | $537,321 | 0.65% | D |
| 5BR | $4,072 | $578,745 | 0.7% | D |
U.S. Census Bureau data (2024)
2260 is the Fair Market Rent (FMR) for ZIP code 94589 in Vallejo, CA, for fiscal year 2024, indicating the maximum amount a Section 8 tenant can be expected to pay for housing. Meanwhile, 2320 represents the market rent (ZORI), showing that properties in this area are priced slightly above the FMR, suggesting a modest premium for landlords who wish to attract tenants outside of the Section 8 program. The median home value stands at 503352, which is significantly higher than both the FMR and ZORI, highlighting the disparity between rental and homeownership costs in Vallejo. With a 40.4% renter share, it's clear that nearly half of the residents in 94589 prefer renting over owning, making it a viable market for landlords and small-portfolio investors. The median income of 92735 suggests that many residents might struggle to afford market rents without assistance, further supporting the relevance of Section 8 in this community. Unfortunately, the data does not provide the average days on market (DOM), but the 0.2% price-cut share indicates that properties are generally well-priced and rarely require reductions to attract buyers or renters.
Given these figures, it's evident that Vallejo, CA, offers a balanced opportunity for landlords interested in Section 8 participation. The relatively low price-cut share and high renter share point towards a stable rental market where demand meets supply effectively. However, the close alignment between the FMR and market rent implies that landlords will need to manage their expectations regarding profit margins when accepting Section 8 tenants. For small-portfolio investors, Vallejo presents a location where rental properties can serve as a solid, if not spectacular, investment opportunity. The median home value also suggests that buying homes in this area could be a worthwhile long-term strategy, given the potential for appreciation and the strong rental market.
Based on the data, the Section 8 program remains a viable option for landlords in Vallejo, CA, offering a steady stream of tenants and predictable income, albeit at rates slightly below the market. This makes it particularly attractive for those looking to stabilize their portfolio or enter the rental market with minimal risk.
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.