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 | $1,960 |
| 1 Bedroom | $2,150 |
| 2 Bedrooms | $2,630 |
| 3 Bedrooms | $3,370 |
| 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 | $364,811 | 0.59% | F |
| 2BR | $2,630 | $531,515 | 0.49% | F |
| 3BR | $3,370 | $659,772 | 0.51% | F |
| 4BR | $3,980 | $699,949 | 0.57% | F |
| 5BR | $4,617 | $794,260 | 0.58% | F |
U.S. Census Bureau data (2024)
The ZIP code 94607 in Oakland, California, presents an interesting scenario for both renters and landlords. The median household income in this area stands at $94,863, which places it above the national average. However, when considering the market rate for rent, which is $2,588 per month (ZORI), the financial landscape becomes less favorable for renters.
To put this into perspective, let’s examine how this compares to the federal housing assistance available through Section 8 vouchers. In ZIP 94607, the Fair Market Rent (FMR) for 2024 is set at $2,170. This means that households receiving Section 8 assistance will have their monthly rent capped at this amount, significantly lower than the market rate.
With nearly 70% of the population being renters and a total population of 28,804, the demand for affordable housing is high. This creates a competitive environment for landlords who must balance the attractiveness of their properties against the financial realities faced by tenants. The disparity between the market rate and the FMR indicates a substantial affordability gap for many residents, especially those without access to rental subsidies.
For landlords considering their rental strategy, the choice between accepting voucher payments or focusing on cash-paying tenants is critical. While cash-paying tenants might offer higher rents, the influx of Section 8 vouchers could provide a stable and reliable source of income, particularly given the high percentage of renters and the overall cost of living in the area.
The takeaway for landlords is clear: while the market rate of $2,588 may seem attractive, the reality of the local economy and the availability of Section 8 vouchers suggest that there is significant competition for affordable units. Landlords who are willing to accept vouchers at the $2,170 FMR level can tap into a larger pool of potential tenants, ensuring a steady stream of income. Conversely, those who opt to charge market rates should be prepared to compete with other landlords and face challenges in attracting tenants who can afford such high rents.
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.