Section 8 Fair Market Rent (FMR) for ZIP 94590 - 2027
Location: Vallejo, CA | Metro: Vallejo, CA MSA
Investment Score for ZIP 94590
F
Monthly Rent (2BR)
$2,230
Median Price (2BR)
$414,270
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 | $1,620 |
| 1 Bedroom | $1,790 |
| 2 Bedrooms | $2,230 |
| 3 Bedrooms | $2,910 |
| 4 Bedrooms | $3,320 |
| 5 Bedrooms | $3,851 |
| 6 Bedrooms | $4,313 |
| 7 Bedrooms | $4,658 |
| 8 Bedrooms | $4,891 |
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 |
$1,790 |
$309,872 |
0.58% |
F |
| 2BR |
$2,230 |
$414,270 |
0.54% |
F |
| 3BR |
$2,910 |
$495,050 |
0.59% |
F |
| 4BR |
$3,320 |
$564,711 |
0.59% |
F |
| 5BR |
$3,851 |
$619,603 |
0.62% |
D |
Demographics & Housing Statistics
U.S. Census Bureau data (2024)
Median Household Income
$65,290
To determine if you should buy in ZIP code 94590 (Vallejo, CA) for Section 8 purposes, follow this decision tree:
- Does the Fair Market Rent (FMR) of $2,040 cover the debt service on a property valued at $453,957?
- Yes. The FMR of $2,040 per month is designed to be sufficient for covering the average monthly mortgage payment, including principal, interest, taxes, and insurance, for a property of this value. This makes it financially viable for landlords participating in the Section 8 program.
- No. If your debt service exceeds $2,040 per month, then the FMR would not be adequate to cover your expenses, making it less attractive for a Section 8 investment.
- Is the market rent of $2,007 (ZORI) above, at, or below the FMR?
- Above. At $2,007, the ZORI is slightly below the FMR of $2,040, indicating that market rents are lower than what the government will pay. This can be advantageous as it means you can still attract tenants willing to pay the ZORI while receiving the higher FMR from the government.
- At. If the ZORI were exactly $2,040, it would mean that market rents align perfectly with the FMR, providing a stable rental income without the need to adjust rates.
- Below. Since the ZORI is already below the FMR, this branch does not apply. However, if it were significantly below, it might indicate a weak rental market, which could affect your ability to find tenants.
- Are 57.6% of residents renters, and is the Days on Market (DOM) of 54 days enough demand?
- It depends. With 57.6% of residents being renters, there is a substantial portion of the population that relies on renting. The DOM of 54 days suggests that properties take about two months to rent out. While this is not ideal, it indicates that there is still demand for rentals. Landlords must weigh this against their tolerance for vacancy periods and the overall economic conditions of the area.
The decision to invest in ZIP 94590 for Section 8 properties hinges on these factors. If the FMR covers your debt service, and market rents are below the FMR, the area presents an opportunity where the government's payment can exceed what the market would offer. Additionally, the percentage of renters and the DOM suggest a moderate demand for rental housing, which is favorable but requires careful consideration of vacancy risks.
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.