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 | $1,430 |
| 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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,840 | $478,269 | 0.38% | F |
| 3BR | $2,440 | $611,168 | 0.4% | F |
U.S. Census Bureau data (2024)
In evaluating the viability of investing in ZIP code 92086, Warner Springs, CA, under the Section 8 program, several key concerns arise. The first objection is whether the Fair Market Rent (FMR) of $1,780 for the fiscal year 2024 will sufficiently cover the mortgage on a home valued at $536,593. To address this, we must consider the typical interest rates and loan terms. Assuming a 30-year fixed-rate mortgage at an average rate of 5%, the monthly payment on such a home would be approximately $2,850. Clearly, the FMR of $1,780 falls short of covering the mortgage, indicating that additional income sources or a lower purchase price might be necessary.
The second objection pertains to the level of demand from renters, which stands at 17.3%. This percentage suggests a relatively low density of potential tenants compared to other areas. However, it's important to note that while this figure is indeed lower, it still represents a significant number of individuals seeking rental housing. The demand, though not high, is steady and should provide a stable tenant pool. Moreover, the rural setting of Warner Springs can attract those who prefer a quieter lifestyle, ensuring a niche but consistent market.
A third concern is whether Section 8 vouchers will keep up with the market rent, which averages around $1,418. The FMR set by HUD is designed to reflect the local housing market conditions and adjust accordingly. While the FMR of $1,780 is higher than the average market rent, it does indicate that voucher amounts are generally sufficient to meet the cost of renting. However, it's crucial to monitor any changes in voucher policies or funding levels that could affect this balance.
To summarize, investing in ZIP 92086 under the Section 8 program presents challenges, particularly in covering mortgage payments and attracting sufficient tenant demand. Yet, the data shows that voucher amounts are adequate for current market rents. Landlords and small-portfolio investors should carefully assess their financial situation and consider these factors before making an investment decision.
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.