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 | $2,370 |
| 1 Bedroom | $2,760 |
| 2 Bedrooms | $3,400 |
| 3 Bedrooms | $4,440 |
| 4 Bedrooms | $5,000 |
| 5 Bedrooms | $5,800 |
| 6 Bedrooms | $6,496 |
| 7 Bedrooms | $7,016 |
| 8 Bedrooms | $7,367 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $3,400 | $520,499 | 0.65% | D |
| 3BR | $4,440 | $961,113 | 0.46% | F |
| 4BR | $5,000 | $1,281,753 | 0.39% | F |
| 5BR | $5,800 | $1,612,532 | 0.36% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP 94947 (Novato, CA, Marin County) can be broken down into a few key components. The SAFMR (Section 8 Area Fair Market Rent) for a two-bedroom apartment in this ZIP code for FY 2024 is set at $2970. This figure represents the maximum amount that the housing authority will pay towards a landlord's rent under the Section 8 program.
In contrast, the local market rent for a two-bedroom unit, as measured by ZORI (Zillow Observed Rent Index), is $3,516. This indicates that landlords could potentially receive higher rents if they were to lease their properties without the use of a Section 8 voucher.
A Section 8 voucher works by covering most of the tenant's rent, but not all. Specifically, the tenant is responsible for paying 30% of their adjusted income towards rent. If we assume an average adjusted income of $20,000 per year, which translates to $1,667 monthly, then the tenant would pay approximately $500 towards rent. This leaves the remaining $2470 to be covered by the housing authority, assuming the full SAFMR is utilized.
Additionally, the housing authority provides utility allowances, which vary based on the number of bedrooms and other factors. For a two-bedroom apartment, the utility allowance might range from $200 to $300 per month. This amount is added to the rent subsidy to provide the total reimbursement to the landlord.
Thus, in ZIP 94947, a landlord would receive a total of $2670 to $2770 per month from the housing authority for a two-bedroom apartment, when including the utility allowance. This sum is derived from the $2970 SAFMR plus the estimated utility allowance.
This means there is a reimbursement gap between the local market rent and the Section 8 reimbursement. In Novato, CA, landlords would face a shortfall of $746 to $846 per month, calculated by subtracting the total reimbursement ($2670 to $2770) from the local market rent of $3,516.
To summarize, while the SAFMR for a two-bedroom apartment in ZIP 94947 is $2970, landlords must factor in the tenant's contribution and utility allowances. Given these considerations, the typical reimbursement gap for a two-bedroom apartment in this ZIP code is $746 to $846, reflecting the difference between the local market rent and the total Section 8 reimbursement.
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.