Section 8 Fair Market Rent (FMR) for ZIP 92122 - 2027

Investment Score for ZIP 92122

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	$2,870
1 Bedroom	$3,060
2 Bedrooms	$3,700
3 Bedrooms	$4,910
4 Bedrooms	$5,930
5 Bedrooms	$6,879
6 Bedrooms	$7,704
7 Bedrooms	$8,320
8 Bedrooms	$8,736

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	$3,060	$483,364	0.63%	D
2BR	$3,700	$693,851	0.53%	F
3BR	$4,910	$1,277,508	0.38%	F
4BR	$5,930	$1,641,836	0.36%	F
5BR	$6,879	$1,799,325	0.38%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 92122 (San Diego, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 92122 is set by HUD for the year 2026. For a two-bedroom apartment, the FMR is $3,940, which represents 45.0% of the median household income in the area. However, the actual rental market price for a two-bedroom unit, according to Zillow, is $723,267. This translates to a price-to-FMR ratio of 15.3x, indicating that the actual rental prices are significantly higher than the FMR. For Section 8 voucher holders, this means that finding affordable housing can be challenging. The voucher system allows tenants to pay 30% of their income towards rent, with the government covering the remainder up to the FMR. Given the high actual rental prices, voucher holders would likely struggle to find landlords willing to accept the voucher amount, especially for units priced well above the FMR. This constraint could lead to a shortage of available rental options for voucher holders, potentially forcing them to seek housing outside of ZIP 92122. #### Affordability & Renter Profile ZIP code 92122 has a population of 45,411, with 65.6% of residents being renters. This indicates a strong demand for rental properties in the area. The occupancy rate stands at 92.5%, suggesting that the market is relatively tight, with few vacant units available. The median household income is $105,177, which is quite high compared to the national average. This affords most residents the ability to afford higher-priced rentals, but it also implies that the rental market is competitive and expensive. Given the high percentage of renters and the limited vacancy rate, the rental market in 92122 is likely to remain robust. However, the significant gap between FMR and actual rental prices suggests that affordability is a major issue, particularly for low-income households who rely on government assistance such as Section 8 vouchers. #### Investor Angle From an investor’s perspective, the ZIP code 92122 presents both opportunities and challenges. The FMR for a two-bedroom apartment is $3,940, which is considerably lower than the actual median rental price of $723,267. This means that landlords who are willing to accept Section 8 vouchers will have to operate at a much lower rent level than the market average. To determine if this ZIP code is cash-flow positive at FMR, we need to consider the typical expenses associated with owning and managing rental properties. These include mortgage payments, property taxes, insurance, maintenance, and management fees. Assuming a conservative estimate of these costs, let’s say they total around $2,500 per month for a two-bedroom unit. At the FMR of $3,940, the net cash flow would be approximately $1,440 per month, which is positive but not substantial given the high purchase price of properties in the area. The investment grade for this ZIP code would depend on factors such as the potential for appreciation, the stability of rental demand, and the overall economic health of the region. Given the high median household income and the strong rental demand, the investment grade is likely to be good, but the cash flow at FMR levels is modest. #### Specific Actionable Insights 1. **Target Properties Below FMR**: Investors should focus on acquiring properties that can be rented below the FMR to attract Section 8 voucher holders. For instance, a two-bedroom unit priced at $3,940 or less would be more likely to appeal to voucher recipients, ensuring steady occupancy and a reliable source of income. 2. **Consider Smaller Units**: Since the FMR for smaller units (0BR and 1BR) is lower ($3,000 and $3,230 respectively), investing in smaller units might provide better cash flow relative to the purchase price. Additionally, the demand for smaller units is likely to be high due to the large number of renters in the area. 3. **Explore Government Programs**: Investors should explore additional government programs that might subsidize rental properties in areas with high rental costs. For example, the Low-Income Housing Tax Credit (LIHTC) program provides tax incentives for developers to build affordable housing. By leveraging such programs, investors can offset some of the higher costs associated with purchasing and maintaining properties in ZIP 92122. #### Bottom Line For Section 8-focused investors, ZIP code 92122 presents a mixed picture. While the high demand for rental properties and the strong economic indicators suggest a favorable investment environment, the significant disparity between FMR and actual rental prices poses challenges. The recommendation for investors is to **Hold** on to existing investments in this ZIP code if they are already operating at or below FMR levels. However, for new acquisitions, investors should proceed cautiously, targeting properties that can be rented at or below the FMR to ensure steady occupancy and positive cash flow. Given the high purchase prices and the limited number of units that can be rented at FMR levels, it may be advisable to **Skip** new investments in this ZIP code unless there are specific strategies in place to mitigate the risks associated with high rental costs. In summary, while ZIP 92122 offers attractive investment opportunities due to its strong rental market and high median income, the practicality of accepting Section 8 vouchers is constrained by the high actual rental prices. Investors should carefully evaluate their portfolio and consider the specific dynamics of this market before making any new investments.

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.