Section 8 Fair Market Rent (FMR) for ZIP 92037 - 2027

Investment Score for ZIP 92037

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	$2,620
1 Bedroom	$2,800
2 Bedrooms	$3,380
3 Bedrooms	$4,480
4 Bedrooms	$5,420
5 Bedrooms	$6,287
6 Bedrooms	$7,041
7 Bedrooms	$7,604
8 Bedrooms	$7,984

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$2,800	$578,055	0.48%	F
2BR	$3,380	$1,120,621	0.3%	F
3BR	$4,480	$2,476,341	0.18%	F
4BR	$5,420	$3,530,636	0.15%	F
5BR	$6,287	$5,126,932	0.12%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 92037 (San Diego, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 92037, as set by HUD for 2026, is $3,510 for a two-bedroom unit. This figure represents 28.6% of the median household income in the area, which stands at $147,230. However, the actual rental market is significantly higher. The Zillow median price for a two-bedroom unit is $1,151,204, which translates to a price-to-FMR ratio of 27.3x. This means that the actual rent for a two-bedroom unit would be approximately $95,700 per year, far exceeding the FMR limit. Given these dynamics, Section 8 voucher holders face significant constraints. They can only afford units priced at or below the FMR, which is substantially lower than the actual market rates. For example, a three-bedroom unit has an FMR of $4,680, but the actual market rate would likely be much higher, making it difficult for voucher holders to find suitable housing. #### Affordability & Renter Profile ZIP code 92037 has a population of 40,717, with 38.5% of residents being renters. The occupancy rate is 85.9%, indicating a relatively tight rental market. Given the high median household income of $147,230, the typical renter profile is likely to include individuals or families who have higher-than-average incomes and can afford the premium rents in this area. Despite the high income levels, the affordability gap is stark. A two-bedroom unit priced at the FMR of $3,510 would consume 28.6% of the median household income, which is considered affordable under HUD guidelines. However, the actual market rent of $95,700 per year for a two-bedroom unit is clearly unaffordable for most households, even those earning the median income. This suggests that the rental market in 92037 is highly competitive and dominated by high-income earners. The tight market conditions make it challenging for lower-income households to find affordable housing, especially when relying on Section 8 vouchers. #### Investor Angle From an investor perspective, the cash flow potential at the FMR level is negative. The FMR for a two-bedroom unit is $3,510, while the actual market rent is approximately $95,700 per year. This indicates that landlords who rent their properties at the FMR will not be able to cover the costs associated with owning and maintaining a property in this ZIP code. To determine the investment grade, we need to consider factors such as vacancy rates, property values, and operating costs. With an occupancy rate of 85.9%, there is a moderate risk of vacancy. Additionally, the high property values suggest that the cost of acquisition and maintenance will be substantial. Given the significant difference between the FMR and market rents, it is unlikely that properties rented at FMR levels will generate positive cash flow. #### Specific Actionable Insights 1. **Focus on Higher-Income Tenants**: Given the high median household income and the fact that the majority of residents are not reliant on Section 8 vouchers, investors should focus on attracting higher-income tenants. This will ensure better cash flow and lower risk of default. 2. **Consider Short-Term Rentals**: The high price-to-FMR ratio suggests that traditional long-term rentals may not be profitable at FMR levels. Investors might consider converting properties into short-term rentals through platforms like Airbnb, which could potentially command higher rates and provide better returns. #### Bottom Line For Section 8-focused investors, the recommendation is to **skip** this ZIP code. The disparity between the FMR and actual market rents makes it nearly impossible to find properties that are both affordable and profitable. The tight rental market and high median household income indicate that this area is best suited for investors targeting higher-income tenants or those willing to explore alternative rental strategies such as short-term rentals. In summary, ZIP code 92037 presents a challenging environment for Section 8 voucher holders and investors seeking to rent at FMR levels. The high median household income and tight rental market suggest that this area is primarily attractive to higher-income renters, leaving little room for affordable housing solutions.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.