Location: San Francisco, CA | Metro: San Francisco, CA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $2,500 |
| 1 Bedroom | $2,920 |
| 2 Bedrooms | $3,590 |
| 3 Bedrooms | $4,690 |
| 4 Bedrooms | $5,280 |
| 5 Bedrooms | $6,125 |
| 6 Bedrooms | $6,860 |
| 7 Bedrooms | $7,409 |
| 8 Bedrooms | $7,779 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 94971 within the San Francisco, CA HUD Metro FMR area reveals several critical insights for landlords and small-portfolio investors.
The first question to address is whether the rent math works. The Fair Market Rent (FMR) for the area in fiscal year 2024 is set at $3250. However, the lack of specific market rent data for comparison means that landlords must rely on the FMR as a guideline. This figure represents the maximum amount that should be charged for a unit to be considered affordable under federal guidelines, but without precise market rent figures, it's challenging to assess if this aligns with local demand.
Moving on to the affordability of acquisitions, the median home value in ZIP 94971 is $1,097,586. This high median value suggests that acquiring properties in this area could be quite expensive. Without detailed data on days on market (DOM) and the percentage of homes requiring price cuts, it's difficult to provide a comprehensive assessment of how quickly and easily properties can be sold or acquired. However, the high median home value indicates that this is a premium market, likely with higher competition and costs.
Lastly, regarding tenant demand, ZIP 94971 has a total population of 276, with 15.6% being renters. Given the small population size, the number of potential tenants is limited, which could affect occupancy rates and the ability to fill vacancies promptly. Despite the small number, the presence of any rental demand is significant in such a densely populated and expensive city as San Francisco.
Verdict: While the FMR provides a benchmark for setting rents at $3250, the absence of market rent data makes it hard to judge the actual viability of rental pricing. Acquisition costs are high, with a median home value of $1,097,586, indicating a challenging entry barrier into the market. Tenant demand is present but limited due to the small population size of 276, with only 15.6% being renters. Investors should proceed cautiously, focusing on areas with higher renter shares for better occupancy assurance.
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.