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 | $2,900 |
| 1 Bedroom | $3,380 |
| 2 Bedrooms | $4,160 |
| 3 Bedrooms | $5,440 |
| 4 Bedrooms | $6,120 |
| 5 Bedrooms | $7,099 |
| 6 Bedrooms | $7,951 |
| 7 Bedrooms | $8,587 |
| 8 Bedrooms | $9,016 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $4,160 | $826,719 | 0.5% | F |
| 3BR | $5,440 | $1,084,147 | 0.5% | F |
U.S. Census Bureau data (2024)
Lagunitas, CA, located in ZIP code 94933, is a small, affluent neighborhood with a total population of just 1,033 residents. Only 21.8% of these residents are renters, indicating a predominantly owner-occupied community. The median household income in this area is a robust $133,006, reflecting the high socioeconomic status of its inhabitants. The median home value stands at an impressive $872,268, which further underscores the exclusivity and desirability of the housing stock.
From an investment standpoint, the Fair Market Rent (FMR) for ZIP code 94933 is set at $3,850 for fiscal year 2024. However, the lack of specific data on market rents makes it challenging to directly compare FMRs with typical rental prices. Given the high median income and median home value, it can be inferred that market rents would likely exceed the FMR, potentially offering higher returns for landlords willing to manage properties outside the Section 8 program.
The low percentage of renters in this ZIP code suggests that it may not be ideal for hands-off voucher operators who rely heavily on the Section 8 program. Instead, the area seems better suited for hands-on value-add buyers who can capitalize on the high-end market and offer premium rentals that cater to the local demand for quality housing. These investors could focus on improving property amenities and aesthetics to attract tenants willing to pay above the FMR, thereby maximizing their rental income potential.
In conclusion, while ZIP 94933 offers strong economic indicators that support high-value real estate investments, the limited demand for subsidized housing makes it less favorable for passive Section 8 operators. For those inclined towards active management and value enhancement, the opportunity to command premium rents exists, aligning well with the affluent character of Lagunitas, CA.
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.