Section 8 Fair Market Rent (FMR) for ZIP 92117 - 2027

Investment Score for ZIP 92117

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	$2,180
1 Bedroom	$2,320
2 Bedrooms	$2,810
3 Bedrooms	$3,730
4 Bedrooms	$4,510
5 Bedrooms	$5,232
6 Bedrooms	$5,860
7 Bedrooms	$6,329
8 Bedrooms	$6,645

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	$2,320	$450,133	0.52%	F
2BR	$2,810	$715,072	0.39%	F
3BR	$3,730	$1,061,478	0.35%	F
4BR	$4,510	$1,224,771	0.37%	F
5BR	$5,232	$1,398,522	0.37%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 92117 (San Diego, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 92117, as of 2026, is set at $3000 for a two-bedroom unit. However, the Zillow median price for a two-bedroom home in this area is $709,952, which translates to a price-to-FMR ratio of 19.7 times. This indicates that actual rents in the area are significantly higher than the FMR, creating a challenging environment for tenants using Section 8 vouchers. The FMR is only 34.7% of the median household income ($103,661), suggesting that the FMR is relatively low compared to what residents can afford. For voucher holders, this means they must find landlords willing to accept a rent that is far below the market rate. #### Affordability & Renter Profile ZIP code 92117 has a population of 52,275, with 43.5% of the households being renters. The occupancy rate stands at 95.8%, indicating a very tight rental market where most available units are quickly occupied. Given the high median household income and the fact that 34.7% of it goes towards a two-bedroom unit at FMR, it suggests that the typical renter in this area is likely to be middle-class or higher-income individuals who can afford the high rents. The high price-to-FMR ratio also implies that there is limited affordable housing, making it difficult for lower-income families to find suitable rentals within their budget. #### Investor Angle From an investor perspective, the ZIP code 92117 presents a mixed picture. While the high median household income and occupancy rates suggest strong demand for rental properties, the significant gap between FMR and market rents poses a challenge. At the FMR of $3000 for a two-bedroom unit, investors would need to ensure that their costs, including acquisition, maintenance, and financing, are sufficiently covered to achieve positive cash flow. Given the median home price of $709,952, the cost of acquiring a property is high, and the rental income at FMR levels might not be enough to cover all expenses, especially if mortgage payments are involved. The investment grade for this ZIP code would be considered moderate to low for Section 8-focused investors due to the stringent rent limits and the potential difficulty in finding tenants willing to accept these limits. Investors should carefully evaluate the financials of any potential investment to ensure profitability. #### Specific Actionable Insights 1. **Focus on Lower-Rent Properties**: Investors should consider focusing on one-bedroom or studio units, which have lower FMRs ($2290 for 0BR and $2460 for 1BR). These units may be more attractive to voucher holders because the gap between FMR and market rents is smaller, making it easier for landlords to find tenants willing to accept the voucher. 2. **Seek Out Affordable Housing Programs**: Since the market rents are so much higher than the FMR, investors might want to explore additional programs that provide subsidies beyond the standard Section 8 voucher. This could include state or local affordable housing initiatives that offer supplementary funding to bridge the gap between FMR and market rents. 3. **Consider Renovation Projects**: Investors could look into purchasing older, less desirable properties at a lower price point and renovating them to increase their appeal while still keeping the rent within FMR limits. This strategy could help attract tenants who are looking for better quality housing but are constrained by the voucher amount. #### Bottom Line Given the high price-to-FMR ratio and the tight rental market, the recommendation for Section 8-focused investors is to **Skip** this ZIP code unless they can identify unique opportunities or leverage additional subsidy programs. The high acquisition costs and the difficulty in finding tenants willing to accept the voucher rent make it a challenging and potentially unprofitable investment for those solely relying on 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.