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 | $2,270 |
| 1 Bedroom | $2,420 |
| 2 Bedrooms | $2,930 |
| 3 Bedrooms | $3,880 |
| 4 Bedrooms | $4,700 |
| 5 Bedrooms | $5,452 |
| 6 Bedrooms | $6,106 |
| 7 Bedrooms | $6,594 |
| 8 Bedrooms | $6,924 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,420 | $850,755 | 0.28% | F |
| 2BR | $2,930 | $1,260,910 | 0.23% | F |
| 3BR | $3,880 | $1,777,733 | 0.22% | F |
| 4BR | $4,700 | $2,258,468 | 0.21% | F |
| 5BR | $5,452 | $2,821,744 | 0.19% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP 92106, located in San Diego, California, does not work favorably for landlords. The Fair Market Rent (FMR) set at $3120 for the fiscal year 2024 is higher than the market rent, which stands at $2,848. This discrepancy suggests that landlords may struggle to find tenants willing to pay the FMR, as it exceeds the typical Zillow Observed Rental Index (ZORI).
Acquisition in this area is relatively expensive. The median home value is $1,794,307, indicating that purchasing properties could be challenging for smaller investors due to the high costs. Additionally, the lack of data on days on market (DOM) and the low percentage of homes requiring price cuts (0.2%) suggest a strong seller's market where homes are likely to sell quickly without needing to reduce their asking price.
Tenant demand is present but not overwhelming. With a population of 21,651, approximately 39.4% of residents are renters. This indicates a significant pool of potential tenants but also implies that nearly two-thirds of the population owns their homes, reducing the overall rental demand relative to the total population.
In summary, while there is a reasonable tenant demand in ZIP 92106, the rent math is unfavorable due to the disparity between FMR and actual market rents. Acquisition costs are high, making it difficult for small-portfolio investors to enter the market without substantial capital. Landlords must carefully consider these factors before investing in this area, especially if they aim to rely solely on Section 8 subsidies to cover their rental income needs.
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.