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 | $2,700 |
| 1 Bedroom | $3,150 |
| 2 Bedrooms | $3,880 |
| 3 Bedrooms | $5,070 |
| 4 Bedrooms | $5,710 |
| 5 Bedrooms | $6,624 |
| 6 Bedrooms | $7,419 |
| 7 Bedrooms | $8,013 |
| 8 Bedrooms | $8,414 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $3,880 | $1,194,271 | 0.32% | F |
| 3BR | $5,070 | $1,631,975 | 0.31% | F |
| 4BR | $5,710 | $2,232,598 | 0.26% | F |
| 5BR | $6,624 | $2,977,519 | 0.22% | F |
U.S. Census Bureau data (2024)
A skeptical investor considering real estate investments in ZIP code 94960, San Anselmo, CA, might raise several objections regarding the feasibility of Section 8 participation. Let's address these concerns with the available data.
Objection 1: Will Fair Market Rent (FMR) of $3170 for ZIP 94960 (FY 2024) cover the mortgage on a $1,654,324 home?
The FMR figure of $3170 does not directly correlate to the mortgage payment on a $1,654,324 home. The mortgage payment depends on factors such as the interest rate, loan term, and down payment. However, using an average interest rate and typical loan terms, the monthly mortgage payment could be substantial, likely exceeding the FMR. This suggests that relying solely on FMR might not be sufficient to cover the mortgage unless the property is purchased with a significant down payment or under favorable financing conditions.
Objection 2: Is there enough renter demand at 27.5%?
The 27.5% figure represents the portion of households in ZIP 94960 that qualify for Section 8 assistance based on income levels. While this percentage indicates a notable demand, it does not provide insight into the total number of potential renters or the vacancy rates. To fully assess demand, one would need to know the total number of households and compare it against the number of available rental units. Without these specifics, it's challenging to definitively state if the demand is high enough to ensure consistent occupancy.
Objection 3: Will vouchers keep pace with $3,150 market rents?
The voucher amount is set by HUD and can vary year over year. For FY 2024, the FMR is $3170, which is lower than the $3150 market rent you've mentioned. This implies that landlords might need to subsidize the difference between the voucher amount and the market rent. It's important to note that while voucher amounts have historically increased, they do not always align with market rent increases. Therefore, it's prudent to consider potential shortfalls when budgeting for property expenses.
In summary, while the data provides some answers, it also highlights areas where additional research is needed to make a fully informed decision about investing in Section 8 properties in ZIP 94960.
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.