Location: San Diego-Chula Vista-Carlsbad, CA | Metro: San Diego-Chula Vista-Carlsbad, CA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,550 |
| 1 Bedroom | $1,650 |
| 2 Bedrooms | $1,990 |
| 3 Bedrooms | $2,650 |
| 4 Bedrooms | $3,220 |
| 5 Bedrooms | $3,735 |
| 6 Bedrooms | $4,183 |
| 7 Bedrooms | $4,518 |
| 8 Bedrooms | $4,744 |
U.S. Census Bureau data (2024)
The Section 8 housing analysis for ZIP code 92059 reveals a significant financial opportunity for landlords and small-portfolio investors due to the disparity between the Fair Market Rent (FMR) and the actual market rent. The FMR for the area, set at $2100 for fiscal year 2024, stands notably higher than the reported market rent of $1263 based on Census ACS data. This creates a gap of $837 per month, representing an increase of approximately 66.2% over the current market rent.
This gap means that voucher tenants can offer landlords a higher rental income compared to what they might receive from non-voucher tenants. Given that only 25.5% of residents in 92059 are renters, the competition for rental properties is relatively low, making it easier to attract and retain voucher tenants. Additionally, the median home value of $1,080,417 suggests that homeownership is significantly more expensive than renting, further supporting the attractiveness of rental properties to potential voucher holders.
The median income in the area is $99,803, which is a critical figure for understanding the economic landscape. This income level indicates that many residents may struggle to afford the high median home value, thereby increasing the demand for affordable rental housing. For landlords, accepting Section 8 vouchers in 92059 can be seen as a strategic yield play, allowing them to capitalize on the government-subsidized rents while maintaining a steady stream of income that exceeds the local market rate.
However, it's important to note that the higher rent through Section 8 vouchers comes with certain responsibilities and requirements. Landlords must ensure their properties meet HUD standards and undergo regular inspections. Despite these obligations, the financial benefits of closing the gap between FMR and market rent can outweigh the costs, especially considering the limited number of renters in the area and the high median home value that drives up the demand for affordable rentals.
Data Sources: FMR data from HUD (2027). 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.