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 |
|---|---|---|---|---|
| 2BR | $3,250 | $1,415,525 | 0.23% | F |
| 3BR | $4,150 | $1,679,565 | 0.25% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 94956, Point Reyes Station, CA, reveals a unique balance between yield and stability that may interest both landlords and small-portfolio investors.
On the yield axis, the Fair Market Rent (FMR) for the fiscal year 2024 stands at $2,950, significantly higher than the market rent of $1,990. This suggests that properties participating in the Section 8 program can command a premium over market rates. However, when considering the average home value of $1,506,867, the rental income, whether from FMR or market rates, represents a relatively modest return on investment. The disparity between the high FMR and the exorbitant home values implies that while there is potential for higher yields through Section 8 participation, the overall yield remains constrained by the high cost of property acquisition.
Moving to the stability axis, the ZIP code has a renter population of 34.9%, which is a moderate figure indicating a decent demand for rentals but not an overwhelming one. The lack of data on days on market (DOM) makes it challenging to assess how quickly rental units can be filled. However, the median household income of $82,205 provides a solid foundation for stable cash flow, assuming tenants have sufficient financial means to cover their rent obligations. The combination of a moderate renter percentage and a healthy median income suggests a degree of stability, though it falls short of being a highly stable market due to the incomplete DOM data.
Based on these figures, ZIP 94956 does not fit neatly into either a high-yield/low-stability 'flip-style' market or a steady-cashflow zone. Instead, it occupies a middle ground, offering a blend of moderate yield potential and stability. The high FMR provides an opportunity for higher rental income compared to market rates, but the extremely high home values temper this potential. Meanwhile, the moderate renter percentage and strong median income support a stable environment, albeit without the robustness needed to categorize it as a steady-cashflow zone.
For landlords and small-portfolio investors, Point Reyes Station presents an interesting scenario where the decision to participate in the Section 8 program must weigh the benefits of higher rents against the challenges posed by high property costs and the need for reliable tenant income streams.
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.