Location: San Diego-Chula Vista-Carlsbad, CA | Metro: San Diego-Chula Vista-Carlsbad, CA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $2,190 |
| 1 Bedroom | $2,330 |
| 2 Bedrooms | $2,820 |
| 3 Bedrooms | $3,740 |
| 4 Bedrooms | $4,520 |
| 5 Bedrooms | $5,243 |
| 6 Bedrooms | $5,872 |
| 7 Bedrooms | $6,342 |
| 8 Bedrooms | $6,659 |
The analysis of the Section 8 cap-rate picture for ZIP code 91979 in California reveals some limitations due to incomplete data. However, we can still derive a rough understanding based on the available figures.
The Fair Market Rent (FMR) for a two-bedroom apartment in ZIP 91979 for fiscal year 2024 is set at an annualized rate of $2830. This figure serves as a benchmark for rental income that can be expected under the Section 8 program. Unfortunately, the market rent for the area is not available, making direct comparisons challenging.
To calculate the implied gross yield, we need the median home value, which is also not provided. Without this information, it's impossible to compute the precise gross yield for either scenario. The gross yield would typically be calculated by dividing the annual rental income by the median home value, expressed as a percentage. For instance, if the median home value were $566,000 (twice the annual FMR), the implied gross yield for the Section 8 scenario would be about 0.5%. However, since the median home value is not known, we cannot provide a concrete comparison.
Given the lack of market rent data, the Section 8 FMR provides a reliable estimate of rental income potential in the area. While the exact gross yield cannot be determined without the median home value, it's reasonable to infer that the yield would be lower compared to typical market yields, due to the fixed nature of Section 8 rents.
The incomplete data on renter density and days on market (DOM) further complicates a comprehensive analysis. These metrics are crucial for understanding the demand dynamics and vacancy risks in the area. Until these figures are available, it remains speculative to determine whether the Section 8 scenario or a hypothetical market rent scenario would be more realistic.
In conclusion, while the annualized FMR for Section 8 offers a clear rental income figure at $2830, the absence of key data points such as market rent, median home value, and specific rental market conditions limits a detailed cap-rate analysis for ZIP 91979. Investors should seek additional local market data to refine their investment calculations.
Data Sources: FMR data from HUD (2027).
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.