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 | $2,670 |
| 1 Bedroom | $2,930 |
| 2 Bedrooms | $3,590 |
| 3 Bedrooms | $4,600 |
| 4 Bedrooms | $5,440 |
| 5 Bedrooms | $6,310 |
| 6 Bedrooms | $7,067 |
| 7 Bedrooms | $7,632 |
| 8 Bedrooms | $8,014 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,930 | $1,029,587 | 0.28% | F |
| 2BR | $3,590 | $1,274,501 | 0.28% | F |
| 3BR | $4,600 | $1,568,878 | 0.29% | F |
| 4BR | $5,440 | $1,901,926 | 0.29% | F |
| 5BR | $6,310 | $2,208,233 | 0.29% | F |
U.S. Census Bureau data (2024)
The real estate market in ZIP 94708, Berkeley, California, presents a robust environment for both homeowners and long-term investors. With a median home value of $1,635,556, the area demonstrates strong pricing power. The fact that 0% of listings have been reduced signals a seller's market where demand is high enough to support current prices without the need for discounts.
While the median days on the market (DOM) is listed as N/A, this likely indicates a rapid turnover of properties, further supporting the notion of a highly competitive market. This setup suggests that landlords and small-portfolio investors can maintain their asking prices for rental units and homes without significant concessions, implying steady income and potentially increasing property values.
On the rental side, the Federal Market Rent (FMR) for ZIP 94708 in fiscal year 2024 is set at $3,510. However, the actual market rent, as indicated by the Zillow Observed Rental Index (ZORI), stands at $4,685. This substantial gap between FMR and ZORI reflects the strong local rental market, which can sustain higher rents due to high demand and limited supply. Landlords can expect to command premium rents, enhancing cash flow from their investment properties.
For long-hold investors, the current market conditions imply a solid appreciation thesis. The high median home value coupled with a competitive rental market suggests that property values will continue to rise, driven by sustained demand and limited inventory. While it is not advisable to predict exact future values, the data points to an environment where long-term investments are likely to yield positive returns, making ZIP 94708 a favorable location for those looking to build equity over time.
In summary, the combination of a high median home value, no listing reductions, and a strong rental market in ZIP 94708 indicates a healthy real estate ecosystem. Investors can leverage this to maximize returns through both ownership and rental strategies, positioning themselves well for continued growth in property values and rental incomes over the next 12-24 months.
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.