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 | $2,260 |
| 1 Bedroom | $2,680 |
| 2 Bedrooms | $3,250 |
| 3 Bedrooms | $4,230 |
| 4 Bedrooms | $4,760 |
| 5 Bedrooms | $5,522 |
| 6 Bedrooms | $6,185 |
| 7 Bedrooms | $6,680 |
| 8 Bedrooms | $7,014 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $3,250 | $2,645,840 | 0.12% | F |
| 3BR | $4,230 | $4,244,154 | 0.1% | F |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP 94970, Stinson Beach, CA, centers on the discrepancy between the Fair Market Rent (FMR) of $3,240 and the current market rent of $2,750. This represents a gap of $490, or approximately 18%, indicating that FMR exceeds the market rate.
In Stinson Beach, where only 4.2% of residents are renters and the median home value stands at $3,266,898, landlords can leverage this situation to maximize their yield. The median income of $132,857 suggests that the majority of residents are homeowners, making the rental market less competitive and thus more favorable for those accepting Section 8 vouchers.
Given the higher FMR compared to the actual market rent, landlords who accept Section 8 vouchers will benefit from a higher rent payment than what they would typically receive from open-market tenants. This makes Stinson Beach a prime location for a yield play, where landlords can generate above-average returns by participating in the Section 8 program.
However, it is important to note that the cost of housing voucher tenants below open-market rates must be considered. Landlords should be aware of the administrative requirements and potential delays associated with the Section 8 program. Despite these challenges, the financial incentive to accept higher rent payments makes it a worthwhile consideration for landlords in Stinson Beach.
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.