Location: San Francisco, CA | Metro: San Francisco, 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 | $2,370 |
| 1 Bedroom | $2,770 |
| 2 Bedrooms | $3,410 |
| 3 Bedrooms | $4,460 |
| 4 Bedrooms | $5,020 |
| 5 Bedrooms | $5,823 |
| 6 Bedrooms | $6,522 |
| 7 Bedrooms | $7,044 |
| 8 Bedrooms | $7,396 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $3,410 | $929,034 | 0.37% | F |
| 3BR | $4,460 | $2,080,352 | 0.21% | F |
| 4BR | $5,020 | $2,907,847 | 0.17% | F |
| 5BR | $5,823 | $4,492,960 | 0.13% | F |
U.S. Census Bureau data (2024)
The classification of ZIP 94904 (Kentfield, CA) on the axes of yield and stability reveals a nuanced market scenario. The Federal Market Rent (FMR) for FY 2024 is set at $2,990. This figure is significantly lower than the market rent of $3,849, indicating a potential gap where landlords can either seek subsidies or find tenants willing to pay above the FMR. However, the median home value of $2,229,837 suggests that the area is highly residential and likely dominated by owner-occupied properties.
On the stability axis, Kentfield has a rental rate of 37.2%, which is relatively low compared to many urban areas. This percentage implies that a majority of residents are homeowners, reducing the pool of potential rental tenants. The lack of data on days on market (DOM) makes it challenging to assess the speed at which properties are rented out, but the median household income of $169,118 is quite robust, suggesting that those who do rent are capable of paying higher rents consistently.
Given these figures, ZIP 94904 leans towards a steady-cashflow zone. While the yield might be moderate due to the lower percentage of renters, the high median income supports stable rental payments from those who choose to rent. The market rent exceeding the FMR also provides an opportunity for landlords to secure better returns through Section 8 participation while still attracting tenants willing to pay market rates.
To summarize, the combination of a decent rental income potential and a strong local economy points towards a market that offers consistent cash flow rather than high-risk, high-reward scenarios typical of flip-style markets. Landlords and small-portfolio investors should expect reliable, if not exceptionally high, yields from properties in this ZIP code.
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.