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 | $2,420 |
| 1 Bedroom | $2,650 |
| 2 Bedrooms | $3,250 |
| 3 Bedrooms | $4,160 |
| 4 Bedrooms | $4,920 |
| 5 Bedrooms | $5,707 |
| 6 Bedrooms | $6,392 |
| 7 Bedrooms | $6,903 |
| 8 Bedrooms | $7,248 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,650 | $320,798 | 0.83% | C |
| 2BR | $3,250 | $554,677 | 0.59% | F |
| 3BR | $4,160 | $1,370,953 | 0.3% | F |
| 4BR | $4,920 | $1,814,602 | 0.27% | F |
| 5BR | $5,707 | $2,138,166 | 0.27% | F |
U.S. Census Bureau data (2024)
ZIP code 94596 is located in Walnut Creek, California, a city known for its affluent lifestyle and suburban charm. The neighborhood boasts a population of 23,417 residents, with a significant portion, 56.4%, being renters. This high percentage of renters indicates a strong demand for rental properties in the area. The median income in ZIP 94596 stands at $135,635, reflecting a community that is economically robust and has disposable income. The median home value of $1,108,413 further underscores the affluence of the area, making it an attractive location for both homeowners and renters.
The rent economics in ZIP 94596 are favorable for investors. The Fair Market Rent (FMR) for the area, as determined by HUD for fiscal year 2024, is set at $2,960. This figure is notably higher than the market rent, which is estimated at $2,722 according to ZORI (Zillow Observed Rent Index). This suggests that landlords can potentially charge rents slightly above the market rate without losing tenants, as the government's rental assistance programs can cover the difference.
Given these economic conditions, ZIP 94596 could be a suitable investment for both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the high FMR ensures that their properties will remain attractive to tenants receiving rental assistance. For those looking to actively manage and improve their investments, the gap between the FMR and market rent provides an opportunity to increase property values and rents over time, leveraging the area’s strong economic base and high demand for rental housing.
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.