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 | $2,000 |
| 1 Bedroom | $2,200 |
| 2 Bedrooms | $2,690 |
| 3 Bedrooms | $3,450 |
| 4 Bedrooms | $4,080 |
| 5 Bedrooms | $4,733 |
| 6 Bedrooms | $5,301 |
| 7 Bedrooms | $5,725 |
| 8 Bedrooms | $6,011 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,200 | $266,883 | 0.82% | C |
| 2BR | $2,690 | $494,895 | 0.54% | F |
| 3BR | $3,450 | $716,484 | 0.48% | F |
| 4BR | $4,080 | $859,958 | 0.47% | F |
| 5BR | $4,733 | $970,575 | 0.49% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP 94803 does not work favorably for Section 8 participants. The Fair Market Rent (FMR) set at $2,420 for fiscal year 2024 is notably lower than the actual market rent, which stands at $2,828 as indicated by ZORI (Zillow Observed Rent Index). This discrepancy means that landlords would need to accept a subsidy that falls short of covering the full market rent, resulting in a financial loss.
Acquisition in ZIP 94803 is challenging due to the high median home value of $739,136. However, there is no available data on the number of days on market (DOM) or the percentage of homes requiring price cuts, which suggests that the housing market might be relatively stable but also indicates limited opportunities for finding affordable properties. Without these metrics, it's difficult to gauge the exact affordability of acquiring properties, but the high median home value points towards a less affordable area overall.
Tenant demand in ZIP 94803 is substantial. With a total population of 27,659, and 27.2% of residents being renters, there are approximately 7,520 potential tenants who could benefit from Section 8 assistance. This sizable renter base ensures that there is a steady pool of applicants looking for affordable housing options.
In conclusion, while ZIP 94803 presents a significant tenant demand, the unfavorable rent math and high median home values make it a less attractive option for landlords and small-portfolio investors seeking to participate in the Section 8 program. The financial gap between FMR and market rents poses a challenge, and the lack of detailed acquisition metrics adds uncertainty to investment decisions. Despite these drawbacks, the presence of numerous potential tenants could still justify participation for those willing to navigate the financial constraints.
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.