Section 8 Fair Market Rent (FMR) for ZIP 92109 - 2027

Investment Score for ZIP 92109

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	$2,700
1 Bedroom	$2,880
2 Bedrooms	$3,480
3 Bedrooms	$4,610
4 Bedrooms	$5,580
5 Bedrooms	$6,473
6 Bedrooms	$7,250
7 Bedrooms	$7,830
8 Bedrooms	$8,222

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	$2,880	$614,465	0.47%	F
2BR	$3,480	$1,118,111	0.31%	F
3BR	$4,610	$1,775,815	0.26%	F
4BR	$5,580	$2,405,365	0.23%	F
5BR	$6,473	$2,776,719	0.23%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 92109 (San Diego, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 92109 in San Diego, CA, for 2026 is set at $3710 for a two-bedroom unit. This figure represents 36.5% of the median household income in the area, which stands at $122,128. However, the actual rental market is significantly higher, with the Zillow median price for a two-bedroom unit being $1,140,491. This translates to a price-to-FMR ratio of 25.6x, indicating that the actual rent far exceeds the FMR. For voucher holders, this means they face significant constraints in finding affordable housing. The FMR is only a fraction of what landlords can charge in the private market, making it challenging for tenants to secure units without substantial out-of-pocket expenses. #### Affordability & Renter Profile ZIP code 92109 has a high population density of 44,820 residents, with 68.8% of the households being renters. This suggests a robust demand for rental properties, but the occupancy rate of 84.6% indicates that there is still some availability in the market. Given the high median household income, the typical renter profile likely includes young professionals, families, and individuals who can afford higher rents. However, the disparity between the FMR and the actual market prices makes it difficult for lower-income households to find affordable housing. The tight market dynamics combined with high rents mean that affordability is a significant issue for many residents. #### Investor Angle From an investor perspective, the FMR for a two-bedroom unit is $3710, while the actual median price is $1,140,491. To determine if this ZIP code is cash-flow positive at FMR, we need to consider the potential rental income versus the mortgage payment and other costs associated with owning a property. Assuming a conservative mortgage rate of 4.5%, a monthly mortgage payment on a $1,140,491 property would be approximately $5,500. Even if we factor in property taxes, insurance, and maintenance costs, the total monthly cost would exceed the FMR by a considerable margin. Therefore, the ZIP code is not cash-flow positive at the FMR level, suggesting that it may not be a viable option for investors looking to generate immediate positive cash flow. #### Investment Grade Given the high median home values and the low FMR relative to these values, the investment grade for this ZIP code is relatively poor for Section 8-focused investors. The high price-to-FMR ratio of 25.6x implies that the rental market is heavily skewed towards higher-end properties, which are not aligned with the FMR guidelines. Investors seeking to maximize returns through rental income would likely struggle to find properties that meet both the FMR requirements and generate sufficient cash flow. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors might consider focusing on smaller units such as one-bedroom apartments. The FMR for a one-bedroom unit is $3040, which is still significantly lower than the actual market price. While this will not solve the affordability issue entirely, it may provide a better chance of securing tenants with Section 8 vouchers. 2. **Consider Alternative Financing Options**: Traditional financing may not be feasible given the high property values and low FMR. Investors could explore alternative financing options like hard money loans or private lenders who might offer more flexible terms. Additionally, they could look into properties that are already Section 8 approved, which could potentially command higher rents due to the guaranteed income stream. 3. **Develop Long-Term Strategies**: Instead of seeking immediate cash flow, investors might focus on long-term strategies such as value appreciation. Properties in ZIP code 92109 are likely to appreciate in value over time due to the strong demand and limited supply. Investors could hold onto properties for several years, expecting capital gains to offset the initial lack of positive cash flow. #### Bottom Line Based on the analysis, the recommendation for Section 8-focused investors in ZIP code 92109 is to **Skip**. The high price-to-FMR ratio and the limited number of properties that can realistically be rented at FMR levels make it challenging to achieve positive cash flow. Additionally, the high median home values suggest that the market is more suited for investors looking for capital appreciation rather than those focused on rental income through 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.