Section 8 Fair Market Rent (FMR) for ZIP 92026 - 2027

Investment Score for ZIP 92026

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	$2,170
1 Bedroom	$2,320
2 Bedrooms	$2,800
3 Bedrooms	$3,710
4 Bedrooms	$4,490
5 Bedrooms	$5,208
6 Bedrooms	$5,833
7 Bedrooms	$6,300
8 Bedrooms	$6,615

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
2BR	$2,800	$588,097	0.48%	F
3BR	$3,710	$823,527	0.45%	F
4BR	$4,490	$970,465	0.46%	F
5BR	$5,208	$1,203,320	0.43%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 92026 (Escondido, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 92026 in Escondido, CA, is set by HUD for 2026. For a two-bedroom unit, the FMR is $2,980. However, the Zillow median price for a two-bedroom home in this area is significantly higher at $586,640, indicating a price-to-FMR ratio of approximately 16.4 times. This suggests that the actual rental prices in the market far exceed the FMR, creating a challenging environment for Section 8 voucher holders. The voucher amount may not be sufficient to cover the rent in many cases, leading to potential difficulties in finding suitable housing. #### Affordability & Renter Profile ZIP code 92026 has a population of 53,075, with 36.9% being renters. The median household income is $104,561, which means that the average renter would need to spend about 34.2% of their income on a two-bedroom apartment at the FMR. Given that the national guideline suggests that housing should cost no more than 30% of a household’s income, this indicates that the rent burden in this area is slightly above the recommended threshold. With an occupancy rate of 95.9%, the market appears to be relatively tight, suggesting limited availability of rental units and potentially driving up rental prices. #### Investor Angle From an investor perspective, the ZIP code 92026 presents a mixed picture. While the FMR for a two-bedroom unit is $2,980, the actual median rental price is much higher, at $586,640. This means that if an investor were to purchase a property at the median price, it would be very difficult to achieve cash flow positivity based solely on the FMR. The high price-to-FMR ratio of 16.4x implies that properties purchased at market rates would likely struggle to attract tenants using Section 8 vouchers due to the significant gap between the voucher amount and the market rent. In terms of investment grade, the ZIP code 92026 is rated as having a low investment grade for Section 8-focused investors. The primary reason for this rating is the disparity between the FMR and the actual rental prices, making it challenging to find tenants who can afford the rent through their vouchers alone. #### Specific Actionable Insights 1. **Target Lower-Rent Properties**: Investors should focus on acquiring properties that are priced below the median but still within the FMR range. For example, targeting a one-bedroom unit with a rent of $2,440 could make it easier to attract Section 8 voucher holders. This strategy would help mitigate the risk of not being able to fill units due to the high cost-to-income ratio. 2. **Consider Multi-Family Units**: Given the high demand for rental properties and the tight market conditions, multi-family units might offer better opportunities. These units can often be rented out at lower individual unit costs compared to single-family homes, making them more accessible to voucher holders. Additionally, multi-family units can provide economies of scale, reducing the overall cost per unit and improving cash flow. #### Bottom Line Based on the analysis, the recommendation for Section 8-focused investors in ZIP code 92026 is to **skip** this market. The high price-to-FMR ratio and the tight rental market make it difficult to find properties that can be rented profitably to tenants with Section 8 vouchers. The mismatch between the actual rental prices and the FMR suggests that the market is not aligned with the financial capabilities of typical Section 8 recipients, leading to a high risk of vacancy and financial strain for investors. --- This analysis provides a clear and concise overview of the rental market dynamics in ZIP code 92026, focusing specifically on the challenges and opportunities for Section 8-focused real estate investors. It highlights the key data points and offers actionable insights based on the provided information.

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.