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 | $2,200 |
| 1 Bedroom | $2,420 |
| 2 Bedrooms | $2,960 |
| 3 Bedrooms | $3,790 |
| 4 Bedrooms | $4,480 |
| 5 Bedrooms | $5,197 |
| 6 Bedrooms | $5,821 |
| 7 Bedrooms | $6,287 |
| 8 Bedrooms | $6,601 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,420 | $455,239 | 0.53% | F |
| 2BR | $2,960 | $1,022,666 | 0.29% | F |
| 3BR | $3,790 | $1,471,555 | 0.26% | F |
| 4BR | $4,480 | $1,762,437 | 0.25% | F |
| 5BR | $5,197 | $1,880,564 | 0.28% | F |
U.S. Census Bureau data (2024)
The ZIP code 94706, located in Albany, California, presents an interesting scenario for both renters and landlords. The median household income here stands at $143,398, which places it above the national average. However, when considering the market rate for rent, which is set at $2,696 per month (ZORI), the situation becomes more nuanced.
Comparatively, the Fair Market Rent (FMR) for the area, which is $2,630 per month for zip code 94706 in fiscal year 2024, closely aligns with the market rate. This suggests that the rental market is well-regulated and reflects the actual cost of living in the area. For households receiving housing vouchers, the FMR serves as a benchmark for the amount landlords can expect to receive through the voucher program.
With 46.7% of the 19,969 population being renters, there is a significant demand for affordable housing. The affordability gap between the median income and the market rate rent means that many renters may struggle to pay market rates without assistance. This creates a competitive landscape for landlords who must decide whether to accept housing vouchers or seek cash-paying tenants.
The takeaway for landlords is clear: while accepting housing vouchers might ensure steady, government-backed payments, it could also limit the pool of potential tenants to those who qualify for assistance. On the other hand, focusing on cash-paying tenants could attract higher-income residents but might require more flexibility in pricing or amenities to remain competitive. Landlords should consider the balance between these two strategies based on their financial goals and the specific needs of their properties.
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.