Location: San Diego-Chula Vista-Carlsbad, CA | Metro: El Centro, 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 | $1,310 |
| 1 Bedroom | $1,410 |
| 2 Bedrooms | $1,750 |
| 3 Bedrooms | $2,340 |
| 4 Bedrooms | $2,860 |
| 5 Bedrooms | $3,318 |
| 6 Bedrooms | $3,716 |
| 7 Bedrooms | $4,013 |
| 8 Bedrooms | $4,214 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,410 | $182,899 | 0.77% | D |
| 2BR | $1,750 | $315,760 | 0.55% | F |
| 3BR | $2,340 | $431,338 | 0.54% | F |
| 4BR | $2,860 | $586,405 | 0.49% | F |
U.S. Census Bureau data (2024)
A decision tree for evaluating ZIP 92004 (Borrego Springs, CA) for Section 8 investments begins with calculating whether the Fair Market Rent (FMR) of $1,420 can cover the debt service on a property valued at $350,824. This is the first gate.
1) Can FMR cover debt service?
If the debt service on a property is less than $1,420 per month, then the answer is yes. However, if the debt service exceeds this amount, the answer is no. For example, a mortgage payment of $1,500 would make the investment unprofitable under Section 8 guidelines.
2) How does market rent compare to FMR?
The data indicates that the market rent is not available for this zip code. Without this information, it's impossible to determine if the market rent is above, at, or below the FMR. If you find out that the market rent is significantly higher than $1,420, then it might be more profitable to consider non-Section 8 tenants. If the market rent is close to or below the FMR, then Section 8 could be a viable option.
3) Is there sufficient demand?
In ZIP 92004, 31.7% of residents are renters. The days on market (DOM) is not available, which makes it challenging to assess the speed at which properties are rented. However, the percentage of renters suggests a reasonable demand. If the DOM is low, indicating quick rental turnover, this strengthens the case for investing in Section 8 properties. Conversely, if the DOM is high, it signals a weak rental market, making the investment less attractive.
It depends: The decision to invest in Section 8 properties in ZIP 92004 hinges on the answers to these questions. If the debt service is covered by the FMR, the market rent is either unavailable or similar to the FMR, and the DOM is low, then the investment is favorable. If any of these conditions are not met, particularly if the debt service cannot be covered by the FMR or the DOM is high, then the investment is not recommended.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.