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 | $1,820 |
| 1 Bedroom | $1,940 |
| 2 Bedrooms | $2,350 |
| 3 Bedrooms | $3,120 |
| 4 Bedrooms | $3,770 |
| 5 Bedrooms | $4,373 |
| 6 Bedrooms | $4,898 |
| 7 Bedrooms | $5,290 |
| 8 Bedrooms | $5,555 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,350 | $646,908 | 0.36% | F |
| 3BR | $3,120 | $758,558 | 0.41% | F |
| 4BR | $3,770 | $819,392 | 0.46% | F |
| 5BR | $4,373 | $887,957 | 0.49% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 91945, Lemon Grove, CA, reveals key insights for landlords and small-portfolio investors considering the area. First, the rent math must be scrutinized. The Fair Market Rent (FMR) for the fiscal year 2024 is set at $2320, while the Zillow Observed Rent Index (ZORI) indicates a market rent of $2605. This suggests that properties priced at the FMR will still fall below the market rate, potentially leaving room for modest increases without pricing out tenants.
Second, the affordability of property acquisition is critical. The median home value in Lemon Grove stands at $762,165, which is a significant investment but may offer solid returns given the local rental market. However, the lack of data on days on market (DOM) and the low 0.3% price-cut share suggest that the market may be stable, with few opportunities for acquiring homes at reduced prices. Landlords should expect to pay close to the median value for any acquisitions.
Lastly, tenant demand is robust. With a total population of 27,745, nearly half (47.5%) of residents are renters. This high percentage of renters indicates a strong demand for rental housing, which can support a healthy occupancy rate for landlords and small-portfolio investors.
In summary, while the rent math shows that FMR is slightly below the market rate, making it possible to charge a premium, the median home value represents a substantial upfront cost. The stability of the market and limited price-cutting opportunities mean that investors should not anticipate significant bargains. However, the high proportion of renters in the population ensures a steady demand for rental properties. For those willing to invest in Lemon Grove, the potential for long-term rental income is promising, given the established rental market and population demographics.
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.