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 | $2,500 |
| 1 Bedroom | $2,920 |
| 2 Bedrooms | $3,590 |
| 3 Bedrooms | $4,690 |
| 4 Bedrooms | $5,280 |
| 5 Bedrooms | $6,125 |
| 6 Bedrooms | $6,860 |
| 7 Bedrooms | $7,409 |
| 8 Bedrooms | $7,779 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,920 | $1,076,514 | 0.27% | F |
| 2BR | $3,590 | $1,373,244 | 0.26% | F |
| 3BR | $4,690 | $1,741,894 | 0.27% | F |
| 4BR | $5,280 | $2,071,702 | 0.25% | F |
U.S. Census Bureau data (2024)
The Section 8 program in ZIP code 94937, which encompasses Point Reyes Station, CA, presents a significant opportunity for landlords and small-portfolio investors due to the substantial gap between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $2870, whereas the Census ACS reports an average market rent of $1,647. This means that the FMR is $1,223 higher than the market rent, representing a 74.3% premium.
This gap makes Point Reyes Station a prime location for voucher tenants. The higher FMR allows landlords to receive rental payments that are significantly above the local market rate, thereby increasing their yield. In a region where only 26.3% of residents are renters, the demand for affordable housing is high, and the median home value stands at $1,473,893. With a median income of $78,281, many residents find it challenging to afford housing at market rates, making the Section 8 program particularly attractive.
Landlords can benefit from this situation by renting properties to voucher holders at the FMR rate, which is considerably higher than what they would typically charge in the open market. This not only ensures steady income but also reduces the risk of vacancy in a market where rental demand is lower compared to homeownership.
However, if the FMR were below the market rent, landlords would face a different scenario. They would have to accept rental payments that are lower than what the market demands, potentially leading to financial losses. In such cases, the cost of housing voucher tenants below open-market rates could be seen as a trade-off between ensuring occupancy and maintaining profitability.
In conclusion, the current dynamics in ZIP 94937 favor landlords who participate in the Section 8 program, given the favorable FMR rates that exceed the local market rent. This makes it an excellent strategy for increasing rental yields and securing tenancy in a market where affordability is a key issue for many residents.
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.