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 | $2,150 |
| 1 Bedroom | $2,360 |
| 2 Bedrooms | $2,890 |
| 3 Bedrooms | $3,700 |
| 4 Bedrooms | $4,380 |
| 5 Bedrooms | $5,081 |
| 6 Bedrooms | $5,691 |
| 7 Bedrooms | $6,146 |
| 8 Bedrooms | $6,453 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,360 | $525,113 | 0.45% | F |
| 2BR | $2,890 | $897,329 | 0.32% | F |
| 3BR | $3,700 | $1,104,026 | 0.34% | F |
| 4BR | $4,380 | $1,270,337 | 0.34% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP 94609, Oakland, California, are straightforward. For a two-bedroom apartment, the SAFMR (Small Area Fair Market Rent) set specifically for this ZIP code is $2,630 per month for the fiscal year 2024. This compares closely to the local market rent, which is recorded at $2,661 according to ZORI (Zillow Observed Rent Index).
A landlord participating in the Section 8 program receives payment from the government for a portion of the rent. The tenant is responsible for paying approximately 30% of their adjusted income towards rent, which typically covers about $789 for a two-bedroom unit in ZIP 94609. This figure is based on an average adjusted income of $2,630 for the household.
In addition to the tenant's contribution, landlords receive a utility allowance. This allowance varies but generally ranges from $200 to $400 per month, depending on the number of bedrooms and other factors. For simplicity, let's assume a $300 utility allowance. Therefore, the total monthly reimbursement a landlord can expect is around $1,089 ($789 tenant contribution + $300 utility allowance).
To break it down further:
Given the SAFMR of $2,630, the typical reimbursement gap for a landlord in ZIP 94609 is the difference between the SAFMR and the sum of the tenant contribution and utility allowance. In this case, the reimbursement gap is $1,541 ($2,630 - $1,089). This means landlords would need to cover this shortfall themselves unless they can negotiate higher contributions from tenants or find ways to reduce operating costs.
Landlords should also be aware that the SAFMR is the maximum amount the government will pay for rent. If the market rent exceeds this amount, landlords must accept the lower reimbursement rate or opt out of the program. However, with the SAFMR and local market rent being nearly identical, landlords can expect a close alignment between the government's reimbursement rates and the actual rents they can charge.
In summary, landlords in ZIP 94609 can anticipate a reimbursement rate of $1,089 for a two-bedroom apartment under the Section 8 program, leaving a gap of $1,541 to be covered independently. This economic reality underscores the importance of thorough financial planning and understanding of the program's rules before entering into a Section 8 agreement.
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.