Section 8 Fair Market Rent (FMR) for ZIP 91950 - 2027

Investment Score for ZIP 91950

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	$1,720
1 Bedroom	$1,840
2 Bedrooms	$2,220
3 Bedrooms	$2,940
4 Bedrooms	$3,560
5 Bedrooms	$4,130
6 Bedrooms	$4,626
7 Bedrooms	$4,996
8 Bedrooms	$5,246

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	$1,840	$395,295	0.47%	F
2BR	$2,220	$610,173	0.36%	F
3BR	$2,940	$711,446	0.41%	F
4BR	$3,560	$783,094	0.45%	F
5BR	$4,130	$860,247	0.48%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 91950 (National City, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 91950, as of 2026, indicate that the rent for a two-bedroom unit is set at $2,340. This figure represents 42.3% of the median household income of $66,426, which suggests that it is relatively affordable for those who qualify for Section 8 vouchers. However, the actual rental market in National City is significantly higher. The Zillow median price for a two-bedroom property is $603,518, which translates to a price-to-FMR ratio of 21.5 times. This means that the actual rental prices are likely much higher than the FMR, creating a significant constraint for voucher holders. For instance, if we assume a typical rental yield of 5%, the monthly rent for a property priced at $603,518 would be approximately $2,515, which is already above the FMR for a two-bedroom unit. Therefore, voucher holders face challenges in finding properties within their budget, especially since landlords often prefer higher-paying tenants due to the administrative burden and potential delays in receiving payments from the government. #### Affordability & Renter Profile National City has a high percentage of renters at 64.3%, indicating a strong demand for rental housing. With a population of 59,891 and an occupancy rate of 93.6%, the market is relatively tight, suggesting limited availability of rental units. The median household income of $66,426 implies that many residents rely on affordable housing options, including Section 8 vouchers. Given that 42.3% of the median income is allocated to a two-bedroom unit, it indicates that a substantial portion of the population may struggle to afford market-rate rentals. The high rent-to-income ratio further exacerbates the affordability issue, making it difficult for low-income households to find suitable accommodation without assistance. #### Investor Angle From an investor perspective, the ZIP code 91950 presents mixed opportunities. While the Zillow median price for a two-bedroom unit is $603,518, the FMR of $2,340 is considerably lower than what investors might expect to earn from market-rate rentals. To determine if this ZIP code is cash-flow positive at FMR, we need to consider the typical mortgage payment, property taxes, insurance, and maintenance costs. Assuming a 30-year fixed-rate mortgage at 5% interest, the monthly payment on a $603,518 property would be around $3,200. Adding an estimated $150 for property taxes, $50 for insurance, and $100 for maintenance, the total monthly expenses would be approximately $3,500. At an FMR of $2,340, the cash flow would be negative by about $1,160 per month. This negative cash flow makes it challenging for investors to generate profit solely from rental income, especially when considering the additional administrative overhead associated with Section 8 vouchers. Given these financial dynamics, the investment grade for this ZIP code would be considered low. The high purchase price and low FMR create a scenario where investors would likely incur losses unless they can secure higher-paying tenants or benefit from other incentives such as tax credits or subsidies. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should focus on smaller units, such as studios or one-bedroom apartments, which have lower FMRs ($1,780 and $1,920 respectively). These units may offer better cash flow opportunities, even though the overall profit margin will still be slim. 2. **Seek Government Incentives**: Investors should explore government incentives like Low-Income Housing Tax Credits (LIHTC) or other subsidies that could offset the negative cash flow. Additionally, understanding the local regulations and policies regarding Section 8 participation can help mitigate some of the administrative burdens. 3. **Consider Long-Term Appreciation**: While the short-term cash flow may be negative, investors should also consider the long-term appreciation potential of the property. San Diego County has historically seen steady increases in property values, and National City may follow similar trends. If the property value appreciates over time, the initial negative cash flow could be offset by future gains. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 91950 is to **skip**. The high purchase price relative to the FMR creates a challenging environment for generating positive cash flow. Additionally, the administrative burden and potential delays in receiving rental payments from the government make it less attractive compared to other areas with more favorable financial conditions. Investors looking to enter this market should carefully weigh the risks and seek out alternative strategies or incentives to improve their financial position.

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.