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 | $427,124 | 0.5% | F |
| 2BR | $2,630 | $539,001 | 0.49% | F |
| 3BR | $3,360 | $647,931 | 0.52% | F |
| 4BR | $3,980 | $746,760 | 0.53% | F |
| 5BR | $4,617 | $860,810 | 0.54% | F |
U.S. Census Bureau data (2024)
ZIP code 94606 is located in Oakland, CA, and represents a densely populated urban neighborhood with a significant rental market presence. The area has a total population of 39,966 residents, with a notable 79.8% being renters, indicating a strong demand for rental properties. The median household income in this ZIP code is $72,470, reflecting a middle-class community where many residents rely on rental options due to financial constraints or lifestyle preferences. The median home value stands at $606,425, which is relatively high compared to other parts of Oakland, suggesting that homeownership is less accessible to the average resident.
From an investment perspective, the rental economics of ZIP 94606 are favorable for landlords and small-portfolio investors. According to the Fair Market Rent (FMR) data for the fiscal year 2024, the subsidized rent rate for a two-bedroom apartment under the Section 8 program is set at $2,170. In contrast, the Zillow Observed Rental Index (ZORI) indicates that the market rent for similar units is $2,398. This discrepancy means that landlords who participate in the Section 8 program can still receive rents close to market rates, making it a viable option for those seeking stable cash flow without the complexities of tenant screening or rent collection.
Given these economic conditions, ZIP 94606 is well-suited for both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the Section 8 program provides a reliable source of tenants and rent payments, minimizing the risk associated with vacancy and delinquency. On the other hand, value-add buyers can leverage the high demand for rentals and the relatively high median home values to improve properties and command higher rents over time, thus increasing their returns on investment. Whether you choose to be a passive participant or an active player in the local real estate market, ZIP 94606 offers a robust environment for rental investments.
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.