Location: San Diego-Chula Vista-Carlsbad, CA | Metro: San Diego-Chula Vista-Carlsbad, CA MSA
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,870 |
| 1 Bedroom | $2,030 |
| 2 Bedrooms | $2,520 |
| 3 Bedrooms | $3,350 |
| 4 Bedrooms | $4,080 |
| 5 Bedrooms | $4,733 |
| 6 Bedrooms | $5,301 |
| 7 Bedrooms | $5,725 |
| 8 Bedrooms | $6,011 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,520 | $698,061 | 0.36% | F |
| 3BR | $3,350 | $862,890 | 0.39% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP code 92061, Pauma Valley, CA, does not align favorably with the financial realities faced by landlords and small-portfolio investors. The Fair Market Rent (FMR) set at $3030 for the fiscal year 2024 significantly exceeds the market rent observed in the area, which stands at $854 according to the Census ACS. This disparity suggests that landlords may struggle to attract tenants willing to pay the higher FMR rate, potentially leading to vacancies.
Acquisition costs in the region are high, with the median home value pegged at $824,962. However, the lack of available data on days on market (DOM) and the low percentage of homes requiring price cuts (0.1%) indicate that once acquired, properties might retain their value well. Despite these positive indicators, the initial investment required remains substantial and could be a barrier for many investors looking to enter the market.
Tenant demand in Pauma Valley is limited. With a total population of 1,543 and only 11.2% of residents identified as renters, the pool of potential tenants is relatively small. This low renter share could make it challenging to fill units consistently, especially given the high rents suggested by the FMR.
In summary, while the acquisition of properties in ZIP 92061 appears to be financially stable due to high median home values and minimal price adjustments, the rent math is unfavorable. The discrepancy between the FMR and market rent, combined with a low renter share, poses significant challenges for landlords and small-portfolio investors. The high acquisition costs further complicate the investment landscape, making this area less attractive unless investors can find ways to mitigate the risk of high vacancy rates and low tenant demand.
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.