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 | $2,830 |
| 1 Bedroom | $3,020 |
| 2 Bedrooms | $3,650 |
| 3 Bedrooms | $4,840 |
| 4 Bedrooms | $5,850 |
| 5 Bedrooms | $6,786 |
| 6 Bedrooms | $7,600 |
| 7 Bedrooms | $8,208 |
| 8 Bedrooms | $8,618 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $3,650 | $758,960 | 0.48% | F |
| 3BR | $4,840 | $1,113,904 | 0.43% | F |
| 4BR | $5,850 | $1,493,840 | 0.39% | F |
| 5BR | $6,786 | $1,831,404 | 0.37% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP 92010, Carlsbad, CA, works favorably for landlords. The Fair Market Rent (FMR) for FY 2024 stands at $3560, which slightly exceeds the current market rent of $3406 (ZORI). This indicates that properties can be priced competitively while still meeting HUD's standards for Section 8.
Acquisition in this area is moderately affordable. With a median home value of $1,293,739, the cost is high but manageable for those looking to invest in upscale properties. However, the lack of available data on days on market (DOM) and the low price-cut share of 0.3% suggest that homes sell quickly and without significant negotiation, indicating a robust seller's market.
Tenant demand is strong. Carlsbad has a population of 18,489, with 35.6% of residents being renters. This substantial rental market provides a solid base of potential tenants for Section 8 properties. Given the favorable rent math and strong demand, landlords can expect steady occupancy rates.
Verdict: ZIP 92010 presents a viable investment opportunity for landlords and small-portfolio investors. The slight edge in FMR over ZORI ensures competitive pricing while maintaining eligibility for Section 8. Despite the high median home value, the quick sales and minimal price adjustments indicate a healthy market. With a significant portion of the population renting, there is ample tenant demand to support occupancy. Overall, the area offers a stable and profitable environment for Section 8 properties.
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.