Section 8 Fair Market Rent (FMR) for ZIP 92028 - 2027

Investment Score for ZIP 92028

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	$1,790
1 Bedroom	$1,900
2 Bedrooms	$2,300
3 Bedrooms	$3,050
4 Bedrooms	$3,690
5 Bedrooms	$4,280
6 Bedrooms	$4,794
7 Bedrooms	$5,178
8 Bedrooms	$5,437

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	$1,900	$522,023	0.36%	F
2BR	$2,300	$670,564	0.34%	F
3BR	$3,050	$852,349	0.36%	F
4BR	$3,690	$1,016,589	0.36%	F
5BR	$4,280	$1,302,737	0.33%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 92028 (Fallbrook, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for Fallbrook, CA (ZIP 92028), is set by HUD for 2026. For a two-bedroom unit, the FMR is $2,440. This amount represents 26.3% of the median household income in the area, which stands at $111,290. The FMR is designed to reflect the average rent that voucher holders can afford based on their income levels. However, the actual rental market in Fallbrook is significantly higher. According to Zillow, the median price for a two-bedroom home is $669,191, which translates into a monthly mortgage payment of approximately $3,100 (assuming a 30-year fixed-rate mortgage at 4.5% interest). Even if we consider the rental equivalent of this price, the price-to-FMR ratio is 22.9x, indicating that the actual rents are much higher than what the FMR suggests. This high ratio means that voucher holders face significant constraints in finding affordable housing. A tenant with a Section 8 voucher would struggle to find a two-bedroom unit within the FMR limit, as landlords might prefer higher-paying tenants who do not require vouchers. Additionally, the voucher amount might not cover the full rent, leading to additional out-of-pocket expenses for the tenant. #### Affordability & Renter Profile Fallbrook has a population of 52,227, with 28.5% of residents being renters. The occupancy rate is quite high at 93.9%, suggesting that the rental market is relatively tight. Given the median household income of $111,290, the majority of residents are likely employed in professional or managerial positions, possibly working in nearby cities like San Diego or Temecula. However, the high price-to-FMR ratio indicates that the rental market is not very affordable for low-income households. The median rent for a two-bedroom unit is $2,440, but the actual median rental price is likely much higher due to the tight market conditions. The median home value of $669,191 also suggests that the area is generally expensive, making it challenging for lower-income individuals to find suitable housing. #### Investor Angle From an investor’s perspective, the ZIP code 92028 presents a mixed picture. While the rental market is robust, with a high occupancy rate and strong demand, the actual rents far exceed the FMR. This makes it difficult for Section 8 voucher holders to secure housing, potentially limiting the pool of potential tenants for properties priced at FMR levels. To determine whether this ZIP code is cash-flow positive at FMR, we need to consider the typical rental rates versus the FMR. If a landlord sets the rent at $2,440 for a two-bedroom unit, they would be below the market rate, which could result in longer vacancy periods or difficulty attracting tenants. On the other hand, setting the rent at the market rate would likely yield better occupancy but would not be covered by the Section 8 voucher program. Given the high price-to-FMR ratio, the investment grade for Section 8-focused investors in Fallbrook is low. The primary constraint is the limited number of tenants who can use Section 8 vouchers due to the high cost of living and rentals. Investors looking to participate in the Section 8 program would need to carefully evaluate the trade-offs between setting rents at FMR levels and attracting tenants. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should consider focusing on smaller units such as one-bedroom apartments. The FMR for a one-bedroom unit is $2,000, which is still below the market rate but closer to what some tenants might be willing to pay. This could help mitigate the risk of long vacancies while still adhering to the Section 8 guidelines. 2. **Consider Subsidies Beyond Section 8**: Due to the high cost of living in Fallbrook, investors might want to explore other subsidies or programs that offer higher rental assistance. For example, local government programs or non-profit organizations might provide additional support to low-income tenants, making it easier to fill units at or near FMR levels. 3. **Location Matters**: Within Fallbrook, certain areas might have slightly lower rental prices compared to others. Investors should conduct a detailed analysis of different neighborhoods within the ZIP code to identify areas where rents are closer to the FMR. This could involve examining areas further from the city center or those with less desirable amenities. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 92028 (Fallbrook, CA) is to **Skip**. The high price-to-FMR ratio and the tight rental market make it challenging to attract and retain tenants who rely solely on Section 8 vouchers. While there is a strong overall demand for rental properties, the mismatch between FMR and actual rents limits the effectiveness of the Section 8 program in this area. Investors should look for opportunities in ZIP codes with a more favorable price-to-FMR ratio or consider alternative subsidy programs that offer higher rental assistance.

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.