Location: San Diego-Chula Vista-Carlsbad, CA | Metro: San Diego-Chula Vista-Carlsbad, CA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,430 |
| 1 Bedroom | $1,520 |
| 2 Bedrooms | $1,840 |
| 3 Bedrooms | $2,440 |
| 4 Bedrooms | $2,950 |
| 5 Bedrooms | $3,422 |
| 6 Bedrooms | $3,833 |
| 7 Bedrooms | $4,140 |
| 8 Bedrooms | $4,347 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 housing situation in ZIP 92066 reveals a significant gap between the Fair Market Rent (FMR) and the actual market rents in the area. The FMR for 2024 is set at $1780, while the market rents, as observed from recent listings, range from approximately $1921 to $3495 per month. This indicates that the market rent is, on average, higher than the FMR, with a notable difference of at least $141 per month or about 8%.
In ZIP 92066, where 23.0% of residents are renters, the median home value stands at $494,852 and the median income is $35,625. Given these figures, landlords and small-portfolio investors must understand the implications of accepting housing vouchers. Voucher tenants typically pay only a portion of their income towards rent, with the rest subsidized by the government. This means that landlords might receive less rent than what the open market demands.
Accepting voucher tenants can still be a yield play, but it requires careful consideration of the financials. Landlords should evaluate whether the lower rent is offset by the stability and security of guaranteed payments from the government. Additionally, the high median home value suggests that the area is generally desirable, which could mean higher demand for rental properties. However, the cost of housing voucher tenants below open-market rates must also be factored into investment strategies.
The following are some market rent examples from nearby areas, which provide insight into the rental landscape in ZIP 92066:
Investors should weigh the benefits of voucher tenants against the potential loss in revenue compared to market rates. Understanding the local economic context is crucial for making informed decisions.
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.