Section 8 Fair Market Rent (FMR) for ZIP 94903 - 2027

Location: San Francisco, CA | Metro: San Francisco, CA HUD Metro FMR Area

Investment Score for ZIP 94903

Monthly Rent (2BR)

$4,350

Median Price (2BR)

$589,648

1% Rule

0.74%

Annual Yield

8.85%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$3,030
1 Bedroom	$3,530
2 Bedrooms	$4,350
3 Bedrooms	$5,690
4 Bedrooms	$6,400
5 Bedrooms	$7,424
6 Bedrooms	$8,315
7 Bedrooms	$8,980
8 Bedrooms	$9,429

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$3,530	$399,093	0.88%	C
2BR	$4,350	$589,648	0.74%	D
3BR	$5,690	$1,200,987	0.47%	F
4BR	$6,400	$1,548,626	0.41%	F
5BR	$7,424	$1,870,864	0.4%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

30,615

Median Household Income

$142,083

Housing Units

12,665

Renter Percentage

34.2%

Occupancy Rate

94.9%

Renter Occupied

4,108

To determine if you should buy in ZIP 94903 (San Rafael, CA) for Section 8 investments, follow these steps:

If the Fair Market Rent (FMR) of $3,820 clears debt service on a $1,251,924 property:
- Yes. Proceed to the next question. The FMR is sufficient to cover your mortgage payments and other costs associated with owning the property.
If the Zillow Observed Rent Index (ZORI) of $3,153 is above, at, or below the FMR:
- Above FMR: It depends. Evaluate the potential for higher rents outside of Section 8. However, if the ZORI is significantly lower than the FMR, you might face challenges in finding non-Section 8 tenants willing to pay the FMR.
- At or Below FMR: Yes. This indicates that the market rent aligns well with the FMR, making it easier to find tenants who can afford the rent and qualify for Section 8.
If there are 34.2% renters in the area and the days on market (DOM) is 24:
- Yes. There is enough rental demand to support a Section 8 property. A DOM of 24 suggests that properties are rented relatively quickly, indicating strong interest from potential tenants.

In summary, if the FMR of $3,820 covers the debt service for a property valued at $1,251,924, and the ZORI of $3,153 is either at or below the FMR, then the answer is yes. Additionally, with 34.2% of residents being renters and a DOM of 24, there is sufficient demand to support a Section 8 investment in ZIP 94903.

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.