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 | $2,100 |
| 1 Bedroom | $2,300 |
| 2 Bedrooms | $2,820 |
| 3 Bedrooms | $3,610 |
| 4 Bedrooms | $4,270 |
| 5 Bedrooms | $4,953 |
| 6 Bedrooms | $5,547 |
| 7 Bedrooms | $5,991 |
| 8 Bedrooms | $6,291 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,300 | $628,774 | 0.37% | F |
| 2BR | $2,820 | $1,064,743 | 0.26% | F |
| 3BR | $3,610 | $1,603,736 | 0.23% | F |
| 4BR | $4,270 | $2,026,606 | 0.21% | F |
U.S. Census Bureau data (2024)
The ZIP code 94709, located in Berkeley, California, presents an interesting scenario for both renters and landlords. The median income here stands at $89,054, which is significantly higher than the national average. However, when considering the market rate for rent, which is set at $3,040 per month (ZORI), it becomes evident that many households face challenges in affording housing without assistance.
To put this into perspective, let's look at the Federal Market Rent (FMR) for the fiscal year 2024, which is $2,390. This figure represents the standard payment amount for Section 8 housing vouchers in the area. The difference between the ZORI and the FMR highlights a substantial affordability gap for low-income households. While those earning close to or above the median income might find the $3,040 market rate manageable, a significant portion of the population, especially given that 75.7% are renters, would struggle to meet these costs.
The population of 12,146 in ZIP 94709 means there is a considerable demand for affordable housing. Landlords must navigate this competitive landscape carefully, balancing their need for rental income against the reality that many potential tenants rely on government assistance to cover their housing costs. The voucher system, while providing a guaranteed payment up to the FMR, offers stability but comes with its own set of administrative requirements and limitations.
For landlords and small-portfolio investors, the takeaway is clear. There is a strong presence of voucher holders in the area due to the high percentage of renters and the significant affordability gap. While cash-paying tenants may offer higher rents, the reliability and ease of managing voucher tenants can be a strategic advantage. Landlords should consider offering units that qualify for the FMR of $2,390, ensuring they remain accessible to a broader range of tenants. This approach can help maintain steady occupancy rates and reduce vacancy costs, making it a practical choice in a market where affordability is a key issue.
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.