Section 8 Fair Market Rent (FMR) for ZIP 91942 - 2027

Investment Score for ZIP 91942

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$2,200
1 Bedroom	$2,350
2 Bedrooms	$2,840
3 Bedrooms	$3,770
4 Bedrooms	$4,550
5 Bedrooms	$5,278
6 Bedrooms	$5,911
7 Bedrooms	$6,384
8 Bedrooms	$6,703

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$2,350	$385,725	0.61%	D
2BR	$2,840	$591,336	0.48%	F
3BR	$3,770	$851,914	0.44%	F
4BR	$4,550	$959,462	0.47%	F
5BR	$5,278	$1,082,048	0.49%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 91942 (La Mesa, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 91942, as set by HUD for 2026, is $3010 for a two-bedroom unit. This represents 38.9% of the median household income in La Mesa, which stands at $92,896. The FMR is designed to ensure that renter households do not spend more than 30% of their income on housing costs. However, the actual rental market in La Mesa is significantly higher than the FMR. For instance, the Zillow median price for a two-bedroom unit is $604,191, resulting in a price-to-FMR ratio of 16.7x. This means that landlords who participate in the Section 8 program must accept a rent that is substantially lower than what they could potentially charge in the open market. Consequently, there are significant constraints for voucher holders, as they may find it challenging to secure housing within the FMR limits due to the high actual rental rates. #### Affordability & Renter Profile With 54.5% of the population being renters, La Mesa has a substantial rental market. Given that the occupancy rate is 95.0%, the market is quite tight, indicating a strong demand for rental properties. The median household income of $92,896 suggests that many residents have the financial capability to afford higher rents, but the significant portion of renters may still struggle with affordability. The FMR for a two-bedroom unit at $3010 is only 38.9% of the median income, highlighting that the FMR is below what would be considered affordable for the average resident. Therefore, the rental market in La Mesa is likely to be competitive, especially for those relying on Section 8 vouchers. #### Investor Angle From an investor perspective, participating in the Section 8 program in La Mesa can be challenging. Given the high actual rental prices compared to the FMR, landlords may face reduced cash flow if they choose to accept Section 8 vouchers. The FMR for a two-bedroom unit is $3010, while the Zillow median price for such a unit is $604,191. This indicates that the rental income from a Section 8 tenant would be far below the potential market rent. To determine the investment grade, we need to consider factors like property values, vacancy rates, and operating expenses. With a price-to-FMR ratio of 16.7x, the investment grade for Section 8 properties in La Mesa is relatively low, as the potential returns are limited by the capped rent levels. #### Specific Actionable Insights 1. **Focus on Multi-Family Properties**: Investors should focus on multi-family properties rather than single-family homes. The FMR for larger units (e.g., 3BR and 4BR) is higher, offering better cash flow opportunities. For example, the FMR for a three-bedroom unit is $4010, and for a four-bedroom unit, it is $4860. These higher FMRs can help offset some of the financial constraints associated with accepting Section 8 vouchers. 2. **Consider Renovation Projects**: Given the tight rental market, properties that are well-maintained and offer modern amenities may attract tenants willing to pay closer to the actual market rates. Investors might consider purchasing older properties at a discount and renovating them to increase their value and appeal. This strategy can also help in securing higher rents from non-voucher tenants, thereby improving overall cash flow. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 91942 is to **Skip**. The high actual rental prices and the low FMR relative to these prices create a challenging environment for cash flow-positive investments. While there is a significant rental market and high demand, the tightness of the market and the disparity between FMR and actual rents make it difficult for investors to achieve satisfactory returns. Instead, investors might want to explore other ZIP codes with more favorable price-to-FMR ratios or consider alternative investment strategies that do not rely solely on Section 8 vouchers. --- This analysis provides a detailed look into the dynamics of the rental market in La Mesa, focusing specifically on how Section 8 vouchers interact with the local real estate landscape. It highlights the challenges and constraints faced by both voucher holders and investors, ultimately recommending a cautious approach to investing in this area with a focus on Section 8 properties.

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.