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 | $2,240 |
| 1 Bedroom | $2,680 |
| 2 Bedrooms | $3,250 |
| 3 Bedrooms | $4,150 |
| 4 Bedrooms | $4,300 |
| 5 Bedrooms | $4,988 |
| 6 Bedrooms | $5,587 |
| 7 Bedrooms | $6,034 |
| 8 Bedrooms | $6,336 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $4,150 | $2,121,778 | 0.2% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP code 94946 does not favor landlords based on the latest data. The Fair Market Rent (FMR) set at $2870 for the fiscal year 2024 is higher than the current market rent of $2,300 reported by the Census ACS. This suggests that while the government considers this amount fair for housing subsidies, the actual rental market is valuing properties lower, creating a discrepancy that could impact profitability.
Regarding property acquisition, the median home value of $2,078,089 makes it an expensive area for investment. The lack of data on days on market (DOM) and the percentage of homes needing price cuts indicates a stable market but also implies that it might be challenging to find undervalued properties quickly. High acquisition costs mean that any new investments should be carefully planned to ensure long-term viability.
Tenant demand in 94946 is relatively low despite its affluent status. With a total population of 715, only 18.5% are renters. This means that there are approximately 132 potential tenants in the area, which is a limited pool compared to other ZIP codes with higher renter shares. Landlords would need to ensure they offer competitive rents and amenities to attract and retain these few tenants.
In conclusion, ZIP code 94946 presents a challenging environment for landlords and small-portfolio investors. The rent math is unfavorable due to the disparity between FMR and market rent. Property acquisition is costly, and tenant demand is low. These factors collectively suggest that this area is not currently an ideal location for rental investment unless you can secure high-end tenants willing to pay closer to the FMR. Careful consideration and strategic planning are essential before making any investment decisions here.
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.