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 | $1,930 |
| 1 Bedroom | $2,150 |
| 2 Bedrooms | $2,630 |
| 3 Bedrooms | $3,360 |
| 4 Bedrooms | $3,980 |
| 5 Bedrooms | $4,617 |
| 6 Bedrooms | $5,171 |
| 7 Bedrooms | $5,585 |
| 8 Bedrooms | $5,864 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,150 | $285,698 | 0.75% | D |
| 2BR | $2,630 | $441,457 | 0.6% | F |
| 3BR | $3,360 | $588,455 | 0.57% | F |
| 4BR | $3,980 | $681,782 | 0.58% | F |
| 5BR | $4,617 | $839,426 | 0.55% | F |
U.S. Census Bureau data (2024)
Richmond 94806 sits directly across the bay from San Francisco, anchored by the massive Chevron Richmond Refinery, a major local employer and economic driver that defines much of the city’s industrial character. The neighborhood is undergoing gradual revitalization, particularly near the transit-rich corridor served by the BART and Amtrak stations, while the historic downtown area offers a mix of local retail and essential services. This area blends urban convenience with a working-class identity, providing access to waterfront parks and a developing restaurant scene that appeals to long-term residents.
Focusing on the financials, the HUD Fair Market Rent (FMR) for a 2-bedroom unit is currently listed at $2,200, while the market rent (Zillow ZORI) sits higher at $2,328, resulting in a gap of $128. Median home values in the zip code are $582,726, with a more specific median 2BR sale price of $445,443. Properties move relatively quickly here, with a median of 37 days on market. Given the difference between the subsidy cap and actual market rates, voucher tenants are essentially paying under market, which suggests standard cash-flowing investments must rely on the FMR baseline rather than top-of-market rents.
The tenant pool is substantial, with a renter share of 50.1% and a median household income of $86,034. This income level indicates a population that can bridge the gap between a voucher and rent ceilings if necessary, yet it remains low enough to sustain high demand for affordable housing programs. Proximity to BART and major freeways like I-580 ensures a steady flow of commuters, while local schools and community amenities provide stability for families looking to settle in the East Bay rather than moving further inland.
The strongest investor angle in Richmond 94806 is long-term stability and portfolio diversification. While the $128 gap between market rent and the 2BR FMR limits immediate premium cash flow, the $2,200 baseline offers solid coverage against vacancies given the median purchase price of $445,443 for two-bedroom homes. Investors should target properties aligned with the 2026 FMR ladder—particularly 3BR units at $3,210—to maximize subsidy value in a market where inventory moves in just over a month.
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.