Section 8 Fair Market Rent (FMR) for ZIP 92104 - 2027

Investment Score for ZIP 92104

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$2,260
1 Bedroom	$2,410
2 Bedrooms	$2,910
3 Bedrooms	$3,860
4 Bedrooms	$4,670
5 Bedrooms	$5,417
6 Bedrooms	$6,067
7 Bedrooms	$6,552
8 Bedrooms	$6,880

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$2,410	$490,964	0.49%	F
2BR	$2,910	$840,661	0.35%	F
3BR	$3,860	$1,279,383	0.3%	F
4BR	$4,670	$1,573,310	0.3%	F
5BR	$5,417	$1,856,157	0.29%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 92104 (San Diego, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 92104 in San Diego, CA, as of 2026, is set at $3090 for a two-bedroom unit. This figure represents 39.4% of the median household income of $94,014. However, the actual rental market in 92104 is significantly higher, with the Zillow median price for a two-bedroom unit being $847,245. The price-to-FMR ratio of 22.8x indicates that the actual rental costs are far above what the government considers fair market rent. This disparity creates significant constraints for voucher holders. A tenant with a Section 8 voucher would struggle to find landlords willing to accept the voucher amount, given the high actual rental rates. For example, a landlord renting a two-bedroom unit at the Zillow median price would be receiving approximately $3530 per month in rent, which is well over the FMR of $3090. Consequently, voucher holders might face limited housing options or have to pay substantial out-of-pocket costs to cover the difference between the voucher amount and the actual rent. #### Affordability & Renter Profile ZIP code 92104 has a population of 47,410, with 71.2% of residents being renters. This high percentage of renters suggests a strong demand for rental properties in the area. The occupancy rate of 94.4% further supports the idea that the market is tight, with very few vacant units available. Given the median household income of $94,014 and the high rental prices, it is likely that many renters are middle-class individuals who can afford the high rents but still benefit from the Section 8 program to some extent. The affordability gap is stark. With the FMR for a two-bedroom unit being only $3090, while the actual median rental price is $847,245, it is clear that the market is highly unaffordable for low-income households. This situation makes it challenging for voucher holders to find suitable housing without additional financial support, and it also suggests that the rental market is primarily catering to higher-income individuals who can afford the premium rates. #### Investor Angle From an investor perspective, the ZIP code 92104 presents a mixed picture. While the actual rental prices are high, the FMR set by HUD is much lower. An investor looking to operate strictly within the FMR guidelines would likely find it difficult to achieve positive cash flow, especially considering the high purchase price of rental properties in the area. For instance, a two-bedroom property purchased at the Zillow median price of $847,245 would need to generate sufficient rental income to cover mortgage payments, maintenance, and other operating expenses. Assuming a mortgage rate of 5%, the monthly mortgage payment alone would be around $4000, which is already above the FMR of $3090. Therefore, relying solely on FMR would result in negative cash flow for most investors. However, if an investor is willing to accept higher rents and not strictly adhere to FMR, the potential for positive cash flow increases. The high rental prices indicate a strong market where demand exceeds supply, making it attractive for investors who can manage properties effectively and attract tenants willing to pay premium rents. #### Specific Actionable Insights 1. **Focus on Properties Below FMR**: Investors should consider purchasing properties that are below the FMR threshold, even if they are not in prime locations. For example, a one-bedroom unit with an FMR of $2530 could potentially be rented out at a slightly higher rate, say $2800, to achieve positive cash flow while still being accessible to voucher holders. 2. **Target Higher-Income Tenants**: Given the high actual rental prices, investors might want to target higher-income tenants who do not rely on Section 8 vouchers. This strategy would allow them to maximize rental income and potentially achieve better cash flow outcomes. For instance, renting a three-bedroom unit at $4120 would be more feasible compared to renting a two-bedroom unit at the same rate. 3. **Consider Property Renovation**: Investing in property renovations to increase the value and appeal of the units can help justify higher rental prices. By improving the quality of the units, investors can command rents closer to the Zillow median price, thereby increasing their chances of achieving positive cash flow. #### Bottom Line For Section 8-focused investors, ZIP code 92104 is a challenging market due to the significant gap between FMR and actual rental prices. The recommendation would be to **skip** this ZIP code unless investors are willing to accept lower-than-market rents or target properties that are already below the FMR threshold. The high cost of entry and the difficulty in finding tenants who can bridge the gap between voucher amounts and actual rents make this a less favorable investment opportunity for those strictly adhering to Section 8 guidelines. In summary, while the rental market in 92104 is robust and attractive for general investors, the constraints imposed by the FMR make it a less viable option for those focusing specifically on Section 8 vouchers.

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.