Location: San Diego-Chula Vista-Carlsbad, CA | Metro: San Diego-Chula Vista-Carlsbad, CA MSA
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 | $2,170 |
| 1 Bedroom | $2,310 |
| 2 Bedrooms | $2,790 |
| 3 Bedrooms | $3,700 |
| 4 Bedrooms | $4,470 |
| 5 Bedrooms | $5,185 |
| 6 Bedrooms | $5,807 |
| 7 Bedrooms | $6,272 |
| 8 Bedrooms | $6,586 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,790 | $320,052 | 0.87% | C |
| 3BR | $3,700 | $389,454 | 0.95% | C |
U.S. Census Bureau data (2024)
The analysis for Section 8 real estate in ZIP code 91934, located in Jacumba, CA, reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for ZIP 91934 in fiscal year 2024 is set at $2830, while the Census ACS reports the average market rent at $2,203. This results in a difference of $627, or approximately 28.5%.
In this scenario where the FMR exceeds the market rent, Jacumba presents an attractive opportunity for landlords and small-portfolio investors looking to maximize yields. Voucher tenants, who pay their portion of the rent based on their income, can provide a stable and reliable source of income. Given that 70.1% of residents in Jacumba are renters, there is a substantial demand for affordable housing. The median home value in the area stands at $344,859, indicating that homeownership is relatively expensive compared to renting.
The median income in Jacumba is $50,469, which suggests that many residents may struggle to afford higher rents. By accepting Section 8 vouchers, landlords can tap into a government-subsidized tenant pool that ensures a consistent rental income, even if it's slightly above the local market rate. This can be particularly beneficial in a market where vacancy rates might be high due to the limited financial means of potential tenants.
However, landlords must also consider the administrative aspects of participating in the Section 8 program. While the higher FMR provides a chance to earn more per unit compared to the open market, there could be additional costs associated with compliance and maintenance standards required by the Housing Choice Voucher program. These factors should be weighed against the potential for increased cash flow and reduced risk of vacancies.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.