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 | $3,060 |
| 1 Bedroom | $3,260 |
| 2 Bedrooms | $3,940 |
| 3 Bedrooms | $5,220 |
| 4 Bedrooms | $6,320 |
| 5 Bedrooms | $7,331 |
| 6 Bedrooms | $8,211 |
| 7 Bedrooms | $8,868 |
| 8 Bedrooms | $9,311 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $3,260 | $880,392 | 0.37% | F |
| 2BR | $3,940 | $1,554,312 | 0.25% | F |
| 3BR | $5,220 | $2,210,090 | 0.24% | F |
| 4BR | $6,320 | $2,989,042 | 0.21% | F |
| 5BR | $7,331 | $3,519,018 | 0.21% | F |
U.S. Census Bureau data (2024)
The rental market in ZIP 92075, Solana Beach, CA, is currently experiencing a dynamic equilibrium. The Fair Market Rent (FMR) for the area stands at $3840 for fiscal year 2024, while the Zillow Observed Rent Index (ZORI) indicates a slightly higher market rent at $4,596. This suggests that the rental market is robust and slightly above the government's fair market assessment, indicating strong demand.
The 0.2% price-cut share implies that very few landlords are reducing their rents to attract tenants, which further supports the notion of a balanced market with steady demand. The median home value of $2,212,377 reflects a high-end residential area where homeownership is a significant investment, potentially limiting the number of new entrants into the market.
The 33.3% renter share highlights an important aspect of the local housing landscape. In a community where over a third of residents are renters, there is a consistent need for rental properties, contributing to long-term housing pressure. This high percentage of renters can be indicative of several factors: young professionals, families seeking flexibility, or individuals who prefer renting due to the area's transient nature.
The absence of specific days on the market (DOM) data makes it challenging to definitively state whether supply outpaces demand or vice versa. However, the low price-cut share and the fact that market rents exceed the FMR suggest that demand is keeping pace with, if not slightly exceeding, supply. Landlords and small-portfolio investors should be aware that maintaining competitive rental rates is key to securing tenants in this vibrant market.
In summary, Solana Beach's rental market is characterized by strong demand and limited supply, with a significant portion of the population choosing to rent rather than buy. This creates a steady environment for rental income, but also means that competition among renters could drive up prices further, especially given the high median home values that may deter some from purchasing.
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.