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 | $3,140 |
| 1 Bedroom | $3,350 |
| 2 Bedrooms | $4,050 |
| 3 Bedrooms | $5,370 |
| 4 Bedrooms | $6,490 |
| 5 Bedrooms | $7,528 |
| 6 Bedrooms | $8,431 |
| 7 Bedrooms | $9,105 |
| 8 Bedrooms | $9,560 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $4,050 | $962,859 | 0.42% | F |
| 3BR | $5,370 | $1,412,256 | 0.38% | F |
| 4BR | $6,490 | $1,989,786 | 0.33% | F |
| 5BR | $7,528 | $2,250,849 | 0.33% | F |
U.S. Census Bureau data (2024)
In ZIP 92011, located in Carlsbad, California, within San Diego County, the economics of Section 8 housing vouchers are straightforward. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment is set at $3,840 per month for fiscal year 2024. This figure is specifically tailored for this ZIP code, reflecting the unique rental market conditions of Carlsbad.
The local market rent, as measured by ZORI (Zillow Observed Rent Index), is higher at $4,092 per month. This difference highlights the gap between what the government deems as fair market rent and the actual rents being charged in the private sector.
When a landlord participates in the Section 8 program, they receive reimbursement from the Housing Choice Voucher program. However, this reimbursement does not cover the entire rent amount. The voucher typically pays the difference between the tenant's portion and the SAFMR. Here’s a breakdown:
Note that utility allowances are separate and do not affect the monthly rental payment directly. Landlords should also be aware that the tenant's contribution can vary based on their income, but it is always 30% of their adjusted income.
In ZIP 92011, the typical reimbursement gap for a two-bedroom unit is the difference between the local market rent and the SAFMR. Given the SAFMR of $3,840 and the local market rent of $4,092, the reimbursement gap is approximately $252 per month. This means landlords would have to accept a slightly lower rent compared to the average market rate, or they could consider offering apartments at the SAFMR level to avoid any shortfall.
For landlords and small-portfolio investors, understanding these economic dynamics is crucial when deciding whether to participate in the Section 8 program. While there are administrative benefits and protections under federal guidelines, the financial aspect requires careful consideration given the reimbursement gap.
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.