Section 8 Fair Market Rent (FMR) for ZIP 92009 - 2027

Investment Score for ZIP 92009

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	$2,850
1 Bedroom	$3,040
2 Bedrooms	$3,670
3 Bedrooms	$4,870
4 Bedrooms	$5,880
5 Bedrooms	$6,821
6 Bedrooms	$7,640
7 Bedrooms	$8,251
8 Bedrooms	$8,664

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$3,040	$549,041	0.55%	F
2BR	$3,670	$744,456	0.49%	F
3BR	$4,870	$1,319,804	0.37%	F
4BR	$5,880	$1,873,124	0.31%	F
5BR	$6,821	$2,404,865	0.28%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 92009 (Carlsbad, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 92009 in Carlsbad, California, is set by HUD for 2026. For a two-bedroom unit, the FMR is $3,970, which represents 29.0% of the median household income of $164,182. This suggests that the rent for a two-bedroom unit is relatively affordable compared to the income levels in the area. However, the actual rental market in Carlsbad is significantly higher, with Zillow reporting a median price of $759,931 for a two-bedroom home. The price-to-FMR ratio is approximately 16.0x, indicating that the actual rental prices are much higher than the FMR. This disparity creates significant constraints for voucher holders. A tenant using a Section 8 voucher would find it challenging to secure a rental property that aligns with the FMR. Landlords might be reluctant to accept vouchers due to the high demand for rentals and the potential for higher market rents. Consequently, voucher holders may struggle to find suitable housing options within their budget. #### Affordability & Renter Profile The population of ZIP code 92009 is 44,739, with 27.7% being renters. Given the occupancy rate of 95.1%, it is clear that the rental market is tight. With such a high occupancy rate, there is little room for additional units, and competition for available rentals is intense. The median household income of $164,182 is quite high, suggesting that the typical resident has a strong financial standing. This implies that most renters in the area can afford market rates, making it difficult for low-income families to compete. The high median income also indicates that the majority of residents are likely employed in high-paying jobs, possibly in industries like technology, healthcare, or finance. These individuals and families are less likely to rely on government assistance programs, further tightening the market for those who do need help. The affordability gap between the FMR and the actual rental prices means that only a small portion of the population can benefit from Section 8 vouchers, leading to a highly competitive environment for subsidized housing. #### Investor Angle From an investor perspective, the ZIP code 92009 presents a mixed picture. While the FMR for a two-bedroom unit is $3,970, the actual market rent is much higher, at around $759,931 based on Zillow data. This suggests that properties rented at FMR would not generate sufficient cash flow to cover expenses and provide a profit margin. In fact, the price-to-FMR ratio of 16.0x indicates that the market rent is nearly 16 times higher than the FMR, making it extremely unlikely for an investor to achieve positive cash flow at FMR levels. Given these factors, the investment grade for properties in ZIP code 92009 that cater to Section 8 tenants would be low. Investors seeking to maximize returns would likely find better opportunities in areas where the FMR is closer to the actual rental prices. Additionally, the tight market and high occupancy rate suggest that there is limited space for new rental units, reducing the potential for expansion and diversification of rental portfolios. #### Specific Actionable Insights 1. **Focus on Higher-Rent Properties**: Since the actual rental prices are significantly higher than the FMR, investors should focus on properties that can command market rents. For example, a two-bedroom unit could potentially rent for $759,931, which is far above the FMR of $3,970. This would ensure a more stable and profitable cash flow. 2. **Consider Mixed-Income Developments**: To balance the needs of both market-rate and Section 8 tenants, investors might consider developing mixed-income properties. By including a small percentage of units reserved for Section 8 tenants, developers can leverage tax credits and other incentives while maintaining overall profitability through higher rents on the remaining units. 3. **Engage with Local Housing Authorities**: Given the constraints faced by voucher holders, engaging with local housing authorities to understand the demand and availability of Section 8 vouchers in the area could provide valuable insights. This could help investors tailor their offerings to meet the needs of subsidized tenants without sacrificing profitability. #### Bottom Line Based on the analysis, the recommendation for Section 8-focused investors in ZIP code 92009 is to **skip** this market. The high price-to-FMR ratio and the tight rental market make it challenging to achieve positive cash flow at FMR levels. Additionally, the high median income and strong financial profile of the typical resident indicate that there is limited demand for subsidized housing. Investors looking to enter the Section 8 market would be better served exploring areas with a more favorable price-to-FMR ratio and a larger percentage of low-income renters.

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.