Section 8 Fair Market Rent (FMR) for ZIP 94973 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Housing Authorities Serving ZIP 94973

• HOUSING AUTHORITY OF COUNTY OF MARIN (San Rafael, CA) - 2,449 Section 8 vouchers

A decision tree for evaluating whether to purchase properties in ZIP code 94973 (Woodacre, CA) for Section 8 investment hinges on three key factors: Fair Market Rent (FMR), market rent, and rental demand.

1) Does FMR of $2870 cover the debt service on a $1,099,761 property?

• Yes: If the landlord can secure a mortgage rate that allows the FMR to exceed the monthly debt service, then the answer is yes. For instance, a 30-year fixed-rate mortgage at 4% interest would result in a monthly payment of approximately $5,300, which is well within the range of what could be covered by multiple Section 8 units. However, if the property is single-family and intended for a single tenant, then $2870 would not be sufficient to cover the debt service.
• No: If the monthly debt service exceeds $2870, then relying solely on Section 8 income would not be financially viable for a single-unit property. The landlord would need to consider additional sources of income or a different investment strategy.

2) Is the market rent of $2,395 above, at, or below the FMR?

• Below FMR: The market rent is below the FMR, indicating that there is potential for higher rents through Section 8 compared to the local market. This makes Section 8 a relatively attractive option since it provides a guaranteed income that is higher than what might be achieved in the open market.
• At or Above FMR: If the market rent were at or above the FMR, it would suggest that landlords could potentially achieve similar or higher rents without the constraints of the Section 8 program. Since the market rent is below the FMR, this scenario does not apply here.

3) Are 8.4% renters and N/A-day days on market (DOM) indicative of enough demand?

• It Depends: With only 8.4% of the population being renters, the overall demand for rental properties in Woodacre, CA is low. However, the lack of available data on days on market (DOM) means we cannot assess how quickly properties are being rented once they become available. If the DOM is short, it indicates strong demand among those looking for rentals. Conversely, a long DOM would suggest weak demand. Given the limited rental population, landlords must ensure that there is a stable and reliable demand for Section 8 housing specifically.

In conclusion, purchasing properties in ZIP 94973 for Section 8 investment is viable if the landlord can structure their financing such that the FMR covers the debt service. Additionally, the potential for higher rents compared to the local market makes Section 8 an appealing option. However, the low percentage of renters suggests that demand must be carefully evaluated, particularly focusing on the specific demand for Section 8 housing.

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.