Section 8 Fair Market Rent (FMR) for ZIP 92111 - 2027

Investment Score for ZIP 92111

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	$2,190
1 Bedroom	$2,330
2 Bedrooms	$2,820
3 Bedrooms	$3,740
4 Bedrooms	$4,520
5 Bedrooms	$5,243
6 Bedrooms	$5,872
7 Bedrooms	$6,342
8 Bedrooms	$6,659

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$2,330	$431,442	0.54%	F
2BR	$2,820	$645,456	0.44%	F
3BR	$3,740	$979,543	0.38%	F
4BR	$4,520	$1,108,157	0.41%	F
5BR	$5,243	$1,264,462	0.41%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 92111 (San Diego, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 92111 is set by HUD for 2026 as follows: - 0BR: $2270 - 1BR: $2440 - 2BR: $2980 - 3BR: $3970 - 4BR: $4810 These figures represent the maximum rent that a Section 8 voucher holder can pay. However, the actual rental market in 92111 is significantly higher. For instance, the Zillow median price for a 2-bedroom apartment is $660,605. This translates into a monthly rental cost of approximately $5,505 based on typical mortgage payments, which is far above the FMR of $2980. The price-to-FMR ratio for a 2BR unit is 18.5x, indicating that actual rents are much higher than the FMR. This disparity creates significant constraints for voucher holders. They would struggle to find units that fit within their budget, especially for larger units like 3BR or 4BR apartments where the gap between FMR and market rent is even wider. For example, a 4BR unit priced at $4810 is still only 87.4% of the Zillow median price for a 2BR unit, highlighting the affordability challenges faced by renters. #### Affordability & Renter Profile ZIP code 92111 has a population of 45,249, with 47.1% being renters. The occupancy rate stands at 96.4%, suggesting a very tight rental market. Given the median household income of $99,644, the average renter in this area likely earns around $99,644 annually, or about $8,303 per month. The FMR for a 2BR unit ($2980) represents 35.9% of the median income, which is relatively affordable compared to the overall income levels. However, the actual market rent of $5,505 is nearly double the FMR and would consume a substantial portion of the average renter’s income, making it challenging for many to afford housing without financial assistance. Given the high occupancy rates and the tight market conditions, it is clear that there is strong demand for rental properties in 92111. However, the high price-to-FMR ratio suggests that the market is not aligned with the needs of low-income renters who rely on Section 8 vouchers. #### Investor Angle From an investor perspective, the ZIP code 92111 presents mixed opportunities. While the rental market is robust, with high occupancy rates and strong demand, the alignment of rents with FMR is poor. The FMR for a 2BR unit is $2980, but the actual market rent is approximately $5,505, which means that properties rented at FMR would likely be cash-flow negative. To determine the investment grade, we need to consider the potential for vacancy and the overall market dynamics. With a 96.4% occupancy rate, the risk of vacancy is low, but the challenge lies in finding tenants willing to pay the FMR. Given the high price-to-FMR ratio, it is unlikely that many properties will be rented at FMR, leading to lower returns for investors focused on Section 8 vouchers. #### Specific Actionable Insights 1. **Target Larger Units**: Investors should focus on larger units such as 3BR or 4BR apartments. While the FMR for these units is also below market rates, they are more likely to attract families who might have multiple vouchers or additional income sources. For instance, a 4BR unit at $4810 could potentially be rented to a family with two vouchers, providing better cash flow. 2. **Consider Non-Section 8 Tenants**: Due to the high price-to-FMR ratio, it might be more profitable to target non-Section 8 tenants who can afford market rates. This strategy would ensure higher rental income and better cash flow, although it would require marketing efforts to attract these tenants. 3. **Develop Properties Near Public Transportation**: Given the high cost of living in 92111, developing properties near public transportation could make them more attractive to both Section 8 and non-Section 8 tenants. This could help in achieving higher occupancy rates and potentially better rental prices. #### Bottom Line For Section 8-focused investors, the ZIP code 92111 is a challenging market due to the significant gap between FMR and actual rents. The recommendation is to **Skip** this ZIP code unless you can target larger units or develop properties with added value propositions like proximity to public transportation. The high price-to-FMR ratio makes it difficult to achieve positive cash flow solely through Section 8 vouchers.

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.