Location: San Francisco, CA | Metro: San Francisco, CA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $2,240 |
| 1 Bedroom | $2,680 |
| 2 Bedrooms | $3,250 |
| 3 Bedrooms | $4,150 |
| 4 Bedrooms | $4,400 |
| 5 Bedrooms | $5,104 |
| 6 Bedrooms | $5,716 |
| 7 Bedrooms | $6,173 |
| 8 Bedrooms | $6,482 |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP 94940, located in San Francisco, CA HUD Metro FMR Area, reveals that the current HUD Fair Market Rent (FMR) is set at $2870 for the fiscal year 2024. This figure is critical for landlords and small-portfolio investors who rely on Section 8 vouchers, as it dictates the maximum rental amount that can be charged under the program.
Unfortunately, the specific market rent data for ZIP 94940 is currently unavailable, which makes direct comparisons challenging. However, based on the HUD FMR alone, landlords can expect that voucher tenants will generally cashflow at or below the FMR rate. This means that properties priced exactly at the FMR are likely to break even or generate minimal positive cashflow, while those priced above the FMR will require premium units to ensure profitability.
To provide context, the median home value in ZIP 94940 stands at $1,490,473. Using this figure, we can derive a rough rent-to-price ratio. Assuming a typical mortgage payment and property expenses, a monthly rent of $2870 translates into a very low rent-to-price ratio, indicating that rental income alone may not cover the costs associated with owning a home in this area. This suggests that appreciation or stability may be more attractive investment angles than cashflow for this ZIP code.
While the days on market (DOM) and the percentage of price cuts are not available, they would typically influence the decision between renting and buying. In areas with high DOM and significant price-cut percentages, it might indicate a challenging market for selling homes, thereby making rental investments more appealing.
The strongest investor angle in ZIP 94940 is likely to be appreciation. Given the high median home values and the strong real estate market in San Francisco, investments in this area are expected to grow in value over time, providing a solid long-term return even if short-term cashflow is limited.
Data Sources: FMR data from HUD (2027). 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.