Section 8 Fair Market Rent (FMR) for ZIP 92057 - 2027

Investment Score for ZIP 92057

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	$2,340
1 Bedroom	$2,500
2 Bedrooms	$3,020
3 Bedrooms	$4,000
4 Bedrooms	$4,840
5 Bedrooms	$5,614
6 Bedrooms	$6,288
7 Bedrooms	$6,791
8 Bedrooms	$7,131

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	$2,500	$355,499	0.7%	D
2BR	$3,020	$514,932	0.59%	F
3BR	$4,000	$796,901	0.5%	F
4BR	$4,840	$977,149	0.5%	F
5BR	$5,614	$1,163,862	0.48%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 92057 (Oceanside, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 92057 is set by HUD for 2026 as follows: - 0BR: $2430 - 1BR: $2610 - 2BR: $3190 (which is 35.2% of the median household income) - 3BR: $4250 - 4BR: $5150 These figures represent the maximum rent that a Section 8 voucher holder can pay. However, the actual rents in Oceanside are significantly higher. For instance, the Zillow median price for a 2BR unit is $517,912, which translates to a monthly rental cost of approximately $4,316 based on typical mortgage rates and property taxes. This means that the price-to-FMR ratio for a 2BR unit is about 13.5x, indicating that the actual rents far exceed the FMR. Consequently, voucher holders face significant constraints in finding affordable housing within their budget. They would likely struggle to find units that meet their needs without exceeding the voucher limits. #### Affordability & Renter Profile The population of Oceanside is 56,835, with 30.9% being renters. The occupancy rate stands at 96.1%, suggesting a tight rental market with limited availability. Given the median household income of $108,814, the 2BR FMR of $3190 represents a relatively small portion of the average income (35.2%). However, this still leaves a significant gap between the FMR and the actual market rents, making it challenging for low-income renters to afford housing. The high price-to-FMR ratio indicates that the market is not particularly affordable for those relying solely on Section 8 vouchers. The disparity between the FMR and the actual market rents suggests that the majority of renters in Oceanside must supplement their income to cover the higher costs, or they might be forced into substandard housing or overcrowded conditions. #### Investor Angle From an investor perspective, the ZIP code 92057 offers mixed opportunities when considering Section 8-focused investments. The FMRs are lower than the actual market rents, which could make properties rented through Section 8 less attractive for investors seeking to maximize returns. However, the high occupancy rate and the presence of a substantial number of renters indicate strong demand for housing in the area. To determine if this ZIP code is cash-flow positive at FMR, we need to consider the typical rental yields and expenses. Assuming a 2BR unit priced at the Zillow median of $517,912, the monthly rental income would be around $4,316. At the FMR of $3190, the difference is $1,126 per month, which could be a significant shortfall for investors. Additionally, the high price-to-FMR ratio implies that the investment grade for Section 8 properties is relatively low, as the potential rental income is substantially below market rates. #### Specific Actionable Insights 1. **Target Lower-Rent Properties**: Investors should focus on acquiring properties that are closer to the FMR levels. For example, a 2BR unit renting at $3190 would be more aligned with the Section 8 voucher limit, providing a better chance for steady occupancy and cash flow. 2. **Consider Mixed-Income Developments**: Developing or investing in mixed-income housing projects can help bridge the affordability gap. By offering a mix of Section 8 units and market-rate rentals, investors can ensure a stable tenant base while also maximizing their overall revenue. 3. **Utilize Government Programs**: Investors should explore government programs designed to support affordable housing, such as tax credits or subsidies, which can offset some of the financial risks associated with renting at FMR levels. These programs can provide additional incentives and reduce the financial burden on investors. #### Bottom Line Given the high price-to-FMR ratio and the tight rental market, the recommendation for Section 8-focused investors in ZIP code 92057 is to **Skip** this market. The significant gap between FMR and actual market rents makes it difficult to achieve positive cash flow, and the limited availability of affordable units could result in prolonged vacancies. Instead, investors should look for areas where the FMR is closer to the actual market rents, ensuring a more balanced and profitable investment strategy.

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.