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 | $1,730 |
| 1 Bedroom | $1,850 |
| 2 Bedrooms | $2,250 |
| 3 Bedrooms | $3,000 |
| 4 Bedrooms | $3,640 |
| 5 Bedrooms | $4,222 |
| 6 Bedrooms | $4,729 |
| 7 Bedrooms | $5,107 |
| 8 Bedrooms | $5,362 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $3,000 | $815,625 | 0.37% | F |
U.S. Census Bureau data (2024)
The ZIP code 92070 presents several challenges for landlords considering participation in the Section 8 program. Tenant turnover is a significant concern, with market rents averaging $1,638 compared to the Federal Market Rent (FMR) of $2,320 for FY 2024. This discrepancy suggests that tenants may struggle to afford higher rents outside of subsidized housing, leading to frequent moves and high turnover rates.
Vacancy exposure is another critical issue. The average number of days on the market (DOM) is not available, which makes it difficult to predict how long properties might remain vacant between tenancies. In a competitive rental market, vacancies can be costly, especially when they occur frequently due to tenant turnover.
Deferred maintenance is also a risk factor. With a typical home value of $766,140 and a median income of $67,017, residents in ZIP 92070 have a relatively low income-to-home-value ratio. This economic disparity may result in landlords having to cover more maintenance costs, as tenants might lack the financial resources to contribute significantly to property upkeep.
Despite these risks, the high renter share of 42.1% indicates a robust demand for rental housing, which often translates into a higher number of Section 8 vouchers being utilized. High renter density usually means greater competition among landlords to secure tenants with vouchers, increasing the likelihood of finding a stable tenant.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.