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 | $2,550 |
| 1 Bedroom | $2,720 |
| 2 Bedrooms | $3,290 |
| 3 Bedrooms | $4,360 |
| 4 Bedrooms | $5,280 |
| 5 Bedrooms | $6,125 |
| 6 Bedrooms | $6,860 |
| 7 Bedrooms | $7,409 |
| 8 Bedrooms | $7,779 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $3,290 | $773,243 | 0.43% | F |
| 3BR | $4,360 | $889,047 | 0.49% | F |
| 4BR | $5,280 | $1,645,358 | 0.32% | F |
| 5BR | $6,125 | $1,768,769 | 0.35% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 92121, located in San Diego, California, within San Diego County, are defined by the Specific Area Fair Market Rent (SAFMR) and the local market rent rates. For a two-bedroom apartment, the SAFMR for FY 2024 is set at $3350. This figure represents the maximum amount that the Housing Choice Voucher program will reimburse landlords for this specific ZIP code. In contrast, the local market rent, measured by the Zillow Observed Rent Index (ZORI), is currently $4010 for the same type of unit.
A landlord should understand that the actual reimbursement received from a Section 8 voucher is calculated based on the tenant's portion of the rent plus any utility allowances. Typically, the tenant is responsible for paying 30% of their adjusted income towards rent. If we assume an average adjusted income of $1,000 per month for a tenant in this area, the tenant would pay approximately $300 towards rent. The remaining balance is covered by the voucher up to the SAFMR limit. Therefore, if the total rent is $3350, the voucher would cover $3050 ($3350 - $300).
Utility allowances vary but are generally modest. For instance, a typical allowance might be around $100-$200 per month, depending on the specific utility costs and policies of the local housing authority. Adding a utility allowance of $150 to the voucher reimbursement brings the total monthly payment to the landlord to $3200.
To summarize the economic impact for a landlord in ZIP 92121, the typical reimbursement for a two-bedroom unit would be around $3200. Given the local market rent of $4010, this leaves a reimbursement gap of $810 per month. Landlords must decide whether accepting a lower rent through Section 8 vouchers is worth the stability and security such tenancy can provide, despite the financial shortfall compared to market rates.
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.