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 | $2,880 |
| 1 Bedroom | $3,360 |
| 2 Bedrooms | $4,140 |
| 3 Bedrooms | $5,410 |
| 4 Bedrooms | $6,090 |
| 5 Bedrooms | $7,064 |
| 6 Bedrooms | $7,912 |
| 7 Bedrooms | $8,545 |
| 8 Bedrooms | $8,972 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $3,360 | $652,100 | 0.52% | F |
| 2BR | $4,140 | $1,244,173 | 0.33% | F |
| 3BR | $5,410 | $1,982,516 | 0.27% | F |
| 4BR | $6,090 | $3,046,206 | 0.2% | F |
| 5BR | $7,064 | $4,231,067 | 0.17% | F |
U.S. Census Bureau data (2024)
With a $3530 Fair Market Rent (FMR) set for zip code 94965 in fiscal year 2024, landlords can expect to receive this amount per unit for Section 8 vouchers. The market rent, known as the Zillow Observed Rent Index (ZORI), stands at $4,165, indicating a premium over the FMR. This gap suggests potential opportunities for landlords willing to meet higher standards for rental properties. In Sausalito, CA, the median home value is a substantial $1,503,625, reflecting the high-end nature of the real estate market in this area. However, only 44.3% of residents are renters, which means the demand for rental units is somewhat limited compared to areas with higher renter shares. Despite this, the median income of $146,946 supports a robust rental market, as it allows many residents to afford higher rents. The lack of available data on days on market (DOM) and the negligible 0.1% price-cut share indicate a stable and strong rental market where units are likely to be occupied without significant negotiation on price. For landlords and small-portfolio investors looking to enter or remain in the Sausalito rental market, the current figures suggest a favorable environment. The Section 8 program, with its set FMR, offers a reliable source of tenants who can afford the cost of living in this expensive area. Given these conditions, landlords should consider the benefits of participating in the Section 8 program to ensure steady occupancy and cash flow.
Section 8 Verdict: Acceptable for investment in Sausalito, CA, given the supportive economic indicators and the stability of the rental market.
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.