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 | $2,920 |
| 1 Bedroom | $3,110 |
| 2 Bedrooms | $3,760 |
| 3 Bedrooms | $4,990 |
| 4 Bedrooms | $6,030 |
| 5 Bedrooms | $6,995 |
| 6 Bedrooms | $7,834 |
| 7 Bedrooms | $8,461 |
| 8 Bedrooms | $8,884 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $3,760 | $1,447,434 | 0.26% | F |
| 3BR | $4,990 | $2,004,747 | 0.25% | F |
| 4BR | $6,030 | $2,716,719 | 0.22% | F |
| 5BR | $6,995 | $3,584,639 | 0.2% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 92007, which encompasses Encinitas, CA, within San Diego County, are defined by the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment at $3550 per month for fiscal year 2024. This SAFMR figure is specific to this ZIP code and reflects the local rental market conditions more accurately than a broader county-level rate.
In contrast, the local market rent for a similar unit, as measured by ZORI (Zillow Observed Rent Index), stands at $4,540. This difference highlights the premium that landlords might typically charge above the SAFMR rate.
A landlord participating in the Section 8 program receives payments from the Housing Choice Voucher Program. These payments cover the tenant's portion of the rent plus an allowance for utilities. The tenant is responsible for paying 30% of their adjusted income towards rent. For simplicity, let's assume the tenant's portion is $1,065, which is 30% of a hypothetical monthly income of $3,550. The remaining balance is covered by the government voucher, up to the SAFMR limit of $3,550.
The reimbursement process works as follows:
Note that the total reimbursement cannot exceed the SAFMR of $3,550. Therefore, if the landlord charges more than $3,550, the excess amount must be paid entirely by the tenant, who may struggle to afford it.
To illustrate, if a landlord sets the rent at the local market rate of $4,540, the government will still only pay up to $3,550. This means the landlord would receive the full $3,550 from the government and $1,065 from the tenant, totaling $4,615, but since the rent is set at $4,540, the landlord would effectively receive $4,540. However, the tenant would have to pay the additional $990 ($4,540 - $3,550) out of pocket, making it difficult for low-income tenants to afford such rents.
The typical reimbursement gap in ZIP 92007 for a two-bedroom unit is thus $990 per month ($4,540 - $3,550). This gap represents the difference between the local market rent and the SAFMR rate, which landlords must consider when deciding whether to accept Section 8 vouchers.
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.