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 | $2,060 |
| 1 Bedroom | $2,190 |
| 2 Bedrooms | $2,650 |
| 3 Bedrooms | $3,510 |
| 4 Bedrooms | $4,250 |
| 5 Bedrooms | $4,930 |
| 6 Bedrooms | $5,522 |
| 7 Bedrooms | $5,964 |
| 8 Bedrooms | $6,262 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,190 | $352,702 | 0.62% | D |
| 2BR | $2,650 | $650,169 | 0.41% | F |
| 3BR | $3,510 | $919,893 | 0.38% | F |
| 4BR | $4,250 | $1,071,858 | 0.4% | F |
| 5BR | $4,930 | $1,302,640 | 0.38% | F |
U.S. Census Bureau data (2024)
San Diego’s 92115 zip code, encompassing the College Area and neighborhoods near San Diego State University, is characterized by a vibrant, youthful energy driven by its major educational institution. The area features a mix of historic mid-century housing and denser student-oriented apartments, offering investors a property type distinct from the downtown high-rises. While the daytime population swells with students and faculty, the residential streets maintain a community feel with access to local coffee shops, parks, and the trolley line, making it a draw for both long-term residents and those seeking walkability.
From a numerical standpoint, the local market presents a clear gap between Section 8 subsidies and current market rates. The FY2024 HUD SAFMR for a 2-bedroom unit sits at $2,490, while the Zillow ZORI market rent reaches $2,685, leaving a shortfall of $195 per month if an owner strictly adheres to the voucher limit. Investors face a steep barrier to entry, with a median home value of $855,181 and a median 2BR sale price of $646,914. However, inventory moves relatively fast at 34 median days on market, indicating strong underlying demand despite the high price points.
The tenant pool here is substantial, with a 60.0% renter share and a median household income of $79,199. This income level suggests that while the area is not low-income, the high concentration of renters—including university staff and graduate students—creates a consistent demand for housing. Families utilizing vouchers are attracted to the area’s amenities, such as the highly rated schools within the San Diego Unified School District and the reliable transit connections via the San Diego Trolley, which facilitates commutes to broader employment centers.
The Section 8 verdict for 92115 leans toward stability and appreciation rather than immediate cashflow. The $195 negative gap between the SAFMR and market rent means investors must ensure their acquisition costs allow for a lower yield or that they can secure rent reasonableness exceptions. However, the high renter share and proximity to SDSU suggest that vacancy risk is low. For a portfolio investor, the strongest angle is betting on long-term asset appreciation in a solid neighborhood, accepting that the Section 8 payments here serve as a reliable floor rather than a market-beating ceiling.
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.