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 | $3,200 |
| 1 Bedroom | $3,410 |
| 2 Bedrooms | $4,120 |
| 3 Bedrooms | $5,460 |
| 4 Bedrooms | $6,610 |
| 5 Bedrooms | $7,668 |
| 6 Bedrooms | $8,588 |
| 7 Bedrooms | $9,275 |
| 8 Bedrooms | $9,739 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $3,410 | $393,764 | 0.87% | C |
| 2BR | $4,120 | $600,854 | 0.69% | D |
| 3BR | $5,460 | $961,546 | 0.57% | F |
| 4BR | $6,610 | $1,273,385 | 0.52% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP 92108, located in San Diego, CA, does not work favorably for landlords. The Fair Market Rent (FMR) set at $3950 for fiscal year 2024 is significantly higher than the actual market rent, which stands at $3,014 (ZORI). This discrepancy suggests that landlords may face challenges in finding tenants willing to pay the FMR, leading to potential vacancies.
Acquisition in this area is moderately affordable. With a median home value of $604,930, purchasing properties can be managed within a reasonable budget. However, the average Days on Market (DOM) of 36 days indicates a relatively quick turnover in listings, which might imply a competitive market. Additionally, only 0.3% of homes are listed with a price cut, suggesting that the market is stable but not highly negotiable.
Tenant demand in ZIP 92108 is strong. The population of 26,790, combined with a 71.9% renter share, points to a robust pool of potential tenants. Landlords can expect a steady stream of applicants, making it easier to maintain occupancy rates.
Verdict: While the rent math in ZIP 92108 presents a challenge due to the disparity between FMR and ZORI, the area remains attractive for acquisition given its moderate home values and quick market turnover. The high tenant demand ensures a consistent flow of renters, making this ZIP code a viable investment for landlords and small-portfolio investors, provided they can adjust their rental pricing to align with market realities. This analysis underscores the importance of understanding local rental dynamics to maximize returns and minimize vacancy risks.
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.