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 | $2,120 |
| 1 Bedroom | $2,330 |
| 2 Bedrooms | $2,850 |
| 3 Bedrooms | $3,650 |
| 4 Bedrooms | $4,320 |
| 5 Bedrooms | $5,011 |
| 6 Bedrooms | $5,612 |
| 7 Bedrooms | $6,061 |
| 8 Bedrooms | $6,364 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,850 | $1,397,443 | 0.2% | F |
| 3BR | $3,650 | $1,716,681 | 0.21% | F |
| 4BR | $4,320 | $2,044,776 | 0.21% | F |
| 5BR | $5,011 | $2,338,712 | 0.21% | F |
U.S. Census Bureau data (2024)
A landlord considering ZIP 94707 (Berkeley, CA) for a Section 8 investment must evaluate several key factors:
1) Does the Fair Market Rent (FMR) of $2,650 cover the debt service on a $1,778,517 property?
Yes: The FMR of $2,650 is sufficient to cover debt service on a property valued at $1,778,517. This assumes the landlord can secure a tenant paying close to the FMR.
No: If the landlord cannot find a tenant willing to pay the FMR, then the $2,650 may not be enough to cover the debt service on such a high-value property. In this case, the investment would not be advisable.
2) How does the Zillow Observed Rent Index (ZORI) of $2,725 compare to the FMR?
ZORI Above FMR: With a ZORI of $2,725, the market rent is higher than the FMR. This indicates that landlords could potentially charge more than the FMR, which is beneficial for those who do not intend to solely rely on Section 8 tenants.
ZORI At FMR: If market conditions change and ZORI aligns with FMR, landlords will need to price their rentals closer to the FMR to attract tenants, but still, the ZORI being just above FMR currently suggests flexibility in pricing.
ZORI Below FMR: This scenario is unlikely given the current ZORI of $2,725, but if market rents were to fall below FMR, it would indicate a challenging environment for landlords who might struggle to fill vacancies without accepting lower rent payments.
3) Is there sufficient demand with 12.5% of residents being renters and N/A-day Days on Market (DOM)?
It Depends: The data shows that 12.5% of residents are renters, which is relatively low compared to other areas. However, the lack of days on market data (N/A-day DOM) means we cannot definitively assess how quickly properties are rented out. If the DOM is low, indicating quick rental turnover, this could support the argument that there is enough demand despite the low percentage of renters. Conversely, if DOM is high, it suggests a tougher rental market where filling vacancies could take longer.
In summary, ZIP 94707 presents an opportunity for landlords interested in Section 8 investments, provided they can secure tenants willing to pay the FMR of $2,650. The market rent, slightly above FMR at $2,725, offers some flexibility. However, the demand question hinges on the actual DOM, which is critical for understanding vacancy rates and rental speed. Landlords should further investigate local rental trends to make a fully informed decision.
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.