Location: Oakland-Fremont, CA | Metro: Oakland-Fremont, CA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $2,080 |
| 1 Bedroom | $2,280 |
| 2 Bedrooms | $2,790 |
| 3 Bedrooms | $3,570 |
| 4 Bedrooms | $4,230 |
| 5 Bedrooms | $4,907 |
| 6 Bedrooms | $5,496 |
| 7 Bedrooms | $5,936 |
| 8 Bedrooms | $6,233 |
To determine if a landlord should invest in ZIP code 94802 for Section 8 properties, follow these steps:
If the FMR of $2600 does not exceed the total debt service, including mortgage payments and other expenses, then the answer is No. The landlord will not be able to sustain financial viability with Section 8 tenants alone.
If the market rent is above $2600, landlords must consider the gap between market rent and FMR. This gap represents the amount landlords might lose compared to renting to market-rate tenants. If the difference is significant and not offset by other benefits such as lower vacancy rates or better tenant retention, the decision is No.
If the market rent is at or below $2600, landlords can proceed to the next step as the FMR provides a competitive rent that matches or exceeds the market rate.
The percentage of renters and the days on market (DOM) are key indicators. Without specific percentages and DOM figures, it's challenging to make a definitive recommendation. However, if the percentage of renters is high and the DOM is low, indicating strong demand and quick turnover, the answer is Yes. Landlords can expect to fill vacancies promptly and maintain steady cash flow.
If the percentage of renters is low or the DOM is high, the answer is No. There isn't sufficient demand to ensure that a Section 8 property will remain occupied, leading to potential financial instability.
In cases where the demand is moderate, landlords should consider additional factors such as neighborhood safety, school quality, and access to public transportation before making a final decision. These elements can influence tenant selection and satisfaction, thereby affecting long-term investment success.
The decision ultimately depends on the landlord's risk tolerance and investment goals. For those seeking stable, government-backed income, 94802 can be a viable option if the FMR sufficiently covers costs and there is adequate demand. For others prioritizing higher returns or flexibility, the area may not meet their needs.
Data Sources: FMR data from HUD (2027).
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.