Location: San Francisco, CA | Metro: San Francisco, CA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $2,620 |
| 1 Bedroom | $3,050 |
| 2 Bedrooms | $3,750 |
| 3 Bedrooms | $4,910 |
| 4 Bedrooms | $5,520 |
| 5 Bedrooms | $6,403 |
| 6 Bedrooms | $7,171 |
| 7 Bedrooms | $7,745 |
| 8 Bedrooms | $8,132 |
U.S. Census Bureau data (2024)
The potential risks for investing in Section 8 properties in ZIP code 94963 must be carefully considered. Firstly, tenant turnover can be a significant issue when comparing the market rent, which is currently not available, to the Fair Market Rent (FMR) of $2920 for fiscal year 2024. This discrepancy can lead to challenges in maintaining consistent occupancy and cash flow. Secondly, the vacancy exposure is heightened due to the unknown number of days on market (DOM), making it difficult to predict how long a property might remain unoccupied between tenants. Lastly, there is an increased risk of deferred maintenance, especially considering the typical home value of $1,300,122 and the median household income of $210,823. These figures suggest that landlords may need to cover substantial maintenance costs out-of-pocket, as the rental income from Section 8 vouchers may not fully offset these expenses.
However, these risks are tempered by the high concentration of renters in the area, with 8.4% of residents being part of the renter share. High renter density typically correlates with higher demand for housing vouchers, which can provide a steady stream of qualified tenants. The presence of many renters also indicates a robust rental market, which can be beneficial for landlords willing to navigate the complexities of Section 8.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.