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 | $328,522 | 0.65% | D |
| 2BR | $2,630 | $422,607 | 0.62% | D |
| 3BR | $3,360 | $486,398 | 0.69% | D |
| 4BR | $3,980 | $541,593 | 0.73% | D |
| 5BR | $4,617 | $628,058 | 0.74% | D |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 94621 in Oakland, California, for fiscal year 2024 is set at $2170. This figure represents the payment standard for landlords participating in the Section 8 Housing Choice Voucher program. It is important to note that this is not the amount you can charge as rent; it is the maximum amount that the Housing Authority will pay on behalf of eligible tenants.
In comparison, the local Zillow Observed Rent Index (ZORI) for the same area stands at $2,386. This indicates that market rents are slightly higher than the FMR, meaning that landlords might have to accept a lower rent if they choose to participate in Section 8. However, the high demand for rental properties in this area, with 63.6% of residents being renters, ensures a steady stream of potential tenants.
The median home value in ZIP 94621 is approximately $452,283, which gives you an idea of the acquisition cost for a property in this area. While this does not directly affect your rental income, it is crucial for understanding the overall investment landscape and the potential resale value of your property.
To participate in Section 8, you must ensure that your property meets the Housing Quality Standards (HQS) set by the local Housing Authority. This verification is essential before you decide to enter into a Section 8 agreement. The HQS inspection will check for safety, health, and habitability issues to make sure your property is suitable for tenants.
Given the FMR of $2170 and the local ZORI of $2,386, you should consider the trade-offs between market rents and the stability provided by Section 8. With over 63% of residents renting, there is significant demand for affordable housing in this area. However, the Section 8 payment standard may result in slightly lower rental income compared to the market rate.
In conclusion, the FMR of $2170 is the ceiling for Housing Authority payments, while the ZORI of $2,386 reflects the current market conditions. The high renter share suggests strong demand, but you must verify that your property meets the necessary standards for participation in the Section 8 program. This will ensure compliance and a smoother process when renting to tenants who receive vouchers.
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.