Section 8 Fair Market Rent (FMR) for ZIP 94610 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Housing Authorities Serving ZIP 94610

• Oakland Housing Authority (Oakland, CA) - 14,343 Section 8 vouchers
• Housing Authority of the County of Alameda (Hayward, CA) - 7,132 Section 8 vouchers
• BERKELEY HOUSING AUTHORITY (Berkeley, CA) - 2,135 Section 8 vouchers
• CITY OF ALAMEDA HOUSING AUTHORITY (Alameda, CA) - 2,059 Section 8 vouchers
• HSG AUTH OF THE CITY OF LIVERMORE (Livermore, CA) - 938 Section 8 vouchers
• Housing Authority of the City of Pleasanton (Pleasanton, CA)

A landlord considering ZIP 94610 (Oakland, CA) for a Section 8 investment must navigate several key factors to make an informed decision. Here's a structured approach:

• Does FMR $2,580 (zip FY 2024) clear debt service on a $1,209,266 property?
  • Yes: The Fair Market Rent (FMR) of $2,580 can cover the debt service if the mortgage rate and terms allow for such a payment. Assuming a conservative mortgage rate of 4%, the annual debt service would be around $48,370. This means the monthly debt service would be approximately $4,031 divided by 12 months, which is $336.42 per month. Therefore, the FMR of $2,580 is well above the required amount.
  • No: If the mortgage rate is higher, say 6%, the annual debt service would rise to about $72,556, making the monthly debt service roughly $6,046 divided by 12 months, which is $504.63 per month. In this case, the FMR of $2,580 might not fully cover the debt service, especially considering other expenses like maintenance and insurance.
• Is market rent $2,230 (ZORI) above, at, or below FMR?
  • Above: At $2,230, the Zillow Observed Rental Index (ZORI) is below the FMR of $2,580. This suggests that landlords participating in the Section 8 program could potentially charge closer to the FMR, increasing their income compared to market rates.
  • At: Not applicable since the ZORI is below the FMR.
  • Below: Since the ZORI is below the FMR, this scenario applies. Landlords could benefit from the higher guaranteed rents from Section 8, but they should also consider the administrative burden and potential delays in payments.
• Are 62.0% renters + N/A-day DOM enough demand?
  • Yes: With 62.0% of residents being renters, there is significant demand for rental properties. However, the lack of data on days on market (DOM) makes it difficult to assess how quickly units might be filled. Assuming strong demand persists, landlords can expect steady occupancy.
  • No: Without DOM data, landlords cannot fully evaluate the speed at which properties are rented out. If the DOM is high, it may indicate difficulty in finding tenants, despite the high percentage of renters.
  • It Depends: It depends on the DOM. A low DOM indicates strong demand and quick tenancy, supporting a positive outlook. Conversely, a high DOM might suggest challenges in filling units, even with a large rental population.

In conclusion, ZIP 94610 presents a viable opportunity for Section 8 investments, particularly if the mortgage rate is favorable and demand remains robust. However, landlords must carefully weigh these factors before proceeding.

Data Sources: FMR data from HUD (2027). 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.