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 | $3,390 |
| 2 Bedrooms | $4,170 |
| 3 Bedrooms | $5,450 |
| 4 Bedrooms | $6,130 |
| 5 Bedrooms | $7,111 |
| 6 Bedrooms | $7,964 |
| 7 Bedrooms | $8,601 |
| 8 Bedrooms | $9,031 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $4,170 | $1,113,750 | 0.37% | F |
| 3BR | $5,450 | $2,293,601 | 0.24% | F |
| 4BR | $6,130 | $3,129,721 | 0.2% | F |
| 5BR | $7,111 | $3,941,841 | 0.18% | F |
U.S. Census Bureau data (2024)
The median income in ZIP 94939, Larkspur, CA, stands at $203,988, indicating a relatively affluent community. However, when juxtaposed against the market rate rental costs, the picture becomes more nuanced. The market rate rent, known as the Zillow Observed Rent Index (ZORI), is $3,489 per month. This figure represents the average rent paid by tenants in the area, based on actual listings and transactions.
Interestingly, the Fair Market Rent (FMR) for the zip code in fiscal year 2024, which is used as a benchmark for Section 8 voucher payments, is set slightly higher at $3,720. This means that landlords participating in the Section 8 program could potentially receive higher monthly rents compared to the current market rate. The difference between the ZORI and the FMR highlights an affordability gap for renters, especially those who do not qualify for housing assistance programs.
Given that 50.2% of the 7,315 residents in Larkspur are renters, competition among landlords can be significant. The affordability gap suggests that some renters might struggle to find suitable housing without financial aid, which could influence their decision-making process when choosing a place to live. Landlords should consider this dynamic when setting their rental strategies.
The takeaway for landlords considering whether to accept vouchers or focus on cash-paying tenants is clear. While the ZORI is lower than the FMR, the latter provides a stable and guaranteed source of income through the Section 8 program. Accepting vouchers could attract a steady stream of tenants and ensure consistent rental payments, despite the slightly higher administrative burden. For those prioritizing higher immediate cash flow, focusing on the non-assisted market might be more appealing, but they must be prepared to compete in a crowded rental market where affordability remains a key concern.
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.