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 | $1,930 |
| 1 Bedroom | $2,150 |
| 2 Bedrooms | $2,630 |
| 3 Bedrooms | $3,360 |
| 4 Bedrooms | $3,980 |
| 5 Bedrooms | $4,617 |
| 6 Bedrooms | $5,171 |
| 7 Bedrooms | $5,585 |
| 8 Bedrooms | $5,864 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,150 | $350,294 | 0.61% | D |
| 2BR | $2,630 | $464,400 | 0.57% | F |
| 3BR | $3,360 | $535,087 | 0.63% | D |
| 4BR | $3,980 | $597,385 | 0.67% | D |
| 5BR | $4,617 | $669,377 | 0.69% | D |
U.S. Census Bureau data (2024)
The classification of ZIP 94603 in Oakland, CA, hinges on analyzing its rental market yield and stability. With a Fair Market Rent (FMR) of $2,170 for the fiscal year 2024, compared to a market rent of $2,720, the potential for higher yields exists if landlords can secure tenants at or near the market rate. However, the median home value stands at $512,438, which is significantly lower than the market rent figure, indicating that rental properties might be more financially viable than owner-occupied homes in this area.
Stability is assessed through the percentage of renters, which is 52.1%, suggesting a balanced mix of homeowners and renters. The absence of data on days on market (DOM) complicates the assessment of property turnover rates, but the median household income of $76,723 provides insight into the economic health of the area. This income level supports the ability of residents to pay market rents, thereby enhancing the stability of rental cash flows.
Given these figures, ZIP 94603 leans towards being a steady-cashflow zone rather than a high-yield/low-stability flip-style market. The disparity between FMR and market rent points to opportunities for landlords to achieve above-average yields, but the strong local economy, evidenced by the median income, suggests that the rental market is stable and less prone to sudden fluctuations. Landlords should focus on maintaining quality properties to attract and retain tenants willing to pay $2,720 per month, ensuring a reliable stream of income.
To summarize, the rental market in ZIP 94603 offers a blend of decent yields and relative stability. The key figures driving this conclusion are the FMR of $2,170 versus the market rent of $2,720, and the median income of $76,723. These factors indicate that while there's room for profit, the market also supports sustainable, long-term investments over quick flips.
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.