Section 8 Fair Market Rent (FMR) for ZIP 92058 - 2027

Investment Score for ZIP 92058

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	$2,210
1 Bedroom	$2,360
2 Bedrooms	$2,880
3 Bedrooms	$3,840
4 Bedrooms	$4,660
5 Bedrooms	$5,406
6 Bedrooms	$6,055
7 Bedrooms	$6,539
8 Bedrooms	$6,866

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
2BR	$2,880	$540,047	0.53%	F
3BR	$3,840	$788,824	0.49%	F
4BR	$4,660	$941,956	0.49%	F
5BR	$5,406	$1,132,717	0.48%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 92058 (Oceanside, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 92058, as set by HUD for 2026, is $3200 for a two-bedroom unit. This amount represents 54.9% of the median household income in Oceanside, which stands at $69,970. The FMR is designed to reflect the average rent that voucher holders can afford, but it often falls short of actual market rents. In this case, the Zillow median price for a two-bedroom home in 92058 is $552,408, which translates to a price-to-FMR ratio of 14.4x. This high ratio indicates that actual rents in the area significantly exceed the FMR, creating a challenging environment for voucher holders. For instance, a landlord renting a two-bedroom unit at the Zillow median price would need to charge approximately $4,603 per month ($552,408 divided by 120 months, assuming a 12-year mortgage). This is well above the $3200 FMR, meaning voucher holders would struggle to find affordable units unless landlords accept lower rents. #### Affordability & Renter Profile Given that 74.6% of the population in 92058 are renters, the rental market is highly active. With a median household income of $69,970, the majority of residents fall into the middle-income bracket. However, the high price-to-FMR ratio suggests that the market is tight and not very affordable for low-income households. The occupancy rate of 94.0% further supports this conclusion, indicating that most units are already occupied and there is little vacancy. This tight market means that competition for rental units is fierce, and many residents may be priced out of the area if they cannot secure a Section 8 voucher or other forms of assistance. #### Investor Angle From an investor perspective, the ZIP code 92058 presents a mixed picture. While the median home price of $552,408 is relatively high, the FMR provides a benchmark for potential rental income. A two-bedroom unit rented at the FMR of $3200 would generate annual income of $38,400. Assuming a typical mortgage payment of around $2,762 per month based on the median home price and a 4.5% interest rate over 30 years, the monthly cash flow would be approximately $438 ($3200 - $2,762). This suggests that while the property could be cash-flow positive, the margin is slim, and any unexpected expenses could quickly erode profitability. In terms of investment grade, the high price-to-FMR ratio and the significant gap between actual rents and FMR indicate that the area is less attractive for investors focusing solely on Section 8 vouchers. The high median home price also implies higher upfront costs and potentially longer payback periods. Additionally, the tight market and high occupancy rates suggest limited opportunities for new rental properties, making it difficult for investors to enter the market without facing stiff competition. #### Specific Actionable Insights 1. **Target Lower-Rent Units**: Given the high price-to-FMR ratio, investors should focus on acquiring properties that can be rented at or below the FMR. This includes smaller units such as studios or one-bedroom apartments. For example, a one-bedroom unit with an FMR of $2620 would generate annual income of $31,440. If the mortgage payment is around $2,262 per month, the monthly cash flow would be $358 ($2620 - $2,262), providing a more stable financial position. 2. **Consider Renovation Projects**: Investors might find value in purchasing older homes that can be renovated and brought up to market standards. By doing so, they can potentially command higher rents while still staying within the FMR limits. For instance, a two-bedroom unit that is renovated and rented at $3200 would still be within the FMR range, offering a better chance of attracting voucher holders. 3. **Explore Multi-Family Properties**: Multi-family properties can offer economies of scale and diversify risk. An investor might consider buying a small apartment complex where some units can be rented at the FMR while others can be rented at market rates. This strategy allows for a balanced approach to managing cash flow and attracting a mix of tenants, including those with Section 8 vouchers. #### Bottom Line Based on the analysis, the recommendation for Section 8-focused investors in ZIP code 92058 is to **Hold**. The high price-to-FMR ratio and limited availability of units at or below the FMR make it challenging to find profitable opportunities. However, investors who can target lower-rent units, undertake renovation projects, or explore multi-family properties may find some success. Overall, the market is tight, and the competition for affordable units is intense, making it a risky proposition for those looking to enter the market without a solid plan.

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.