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 | $2,100 |
| 1 Bedroom | $2,230 |
| 2 Bedrooms | $2,700 |
| 3 Bedrooms | $3,580 |
| 4 Bedrooms | $4,330 |
| 5 Bedrooms | $5,023 |
| 6 Bedrooms | $5,626 |
| 7 Bedrooms | $6,076 |
| 8 Bedrooms | $6,380 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,230 | $526,473 | 0.42% | F |
| 2BR | $2,700 | $683,263 | 0.4% | F |
| 3BR | $3,580 | $767,276 | 0.47% | F |
| 4BR | $4,330 | $821,053 | 0.53% | F |
| 5BR | $5,023 | $983,339 | 0.51% | F |
U.S. Census Bureau data (2024)
ZIP code 92102 is located in the heart of San Diego, California, encompassing a vibrant urban neighborhood with a significant rental market presence. The area boasts a population of 38,901 residents, with 67.3% being renters, indicating a strong demand for rental properties. The median household income in this ZIP code is $77,248, reflecting a middle-class community with reasonable financial stability. The median home value stands at $726,721, which suggests that homeownership is relatively expensive, further reinforcing the attractiveness of renting.
Moving into the realm of rent economics, the Fair Market Rent (FMR) for ZIP 92102 for fiscal year 2024 is set at $2,380. This figure represents the government's benchmark for rental affordability, particularly for programs like Section 8. In contrast, the actual market rent, as measured by Zillow's ZORI index, is slightly higher at $2,437. This indicates that landlords participating in the Section 8 program can expect their rental rates to be very close to the market average, ensuring they remain competitive while receiving subsidized payments.
The question then arises: does this neighborhood suit a hands-off voucher operator or require a more hands-on approach for a value-add buyer? Given the high percentage of renters and the median income level, it is evident that the area has a robust demand for affordable housing. For a hands-off voucher operator, ZIP 92102 presents an ideal opportunity due to its stable tenant base and proximity to amenities. However, for a value-add buyer looking to enhance property value through renovations or improvements, the high median home value signals a potential for significant returns if executed correctly. Both strategies have merit, but the choice depends on the investor's goals and risk tolerance.
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.