Section 8 Fair Market Rent (FMR) for ZIP 92129 - 2027

Investment Score for ZIP 92129

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	$2,400
1 Bedroom	$2,560
2 Bedrooms	$3,090
3 Bedrooms	$4,100
4 Bedrooms	$4,950
5 Bedrooms	$5,742
6 Bedrooms	$6,431
7 Bedrooms	$6,945
8 Bedrooms	$7,292

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	$2,560	$407,915	0.63%	D
2BR	$3,090	$558,255	0.55%	F
3BR	$4,100	$1,148,931	0.36%	F
4BR	$4,950	$1,427,181	0.35%	F
5BR	$5,742	$1,739,494	0.33%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 92129 (San Diego, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 92129, as per the 2026 estimates, is set at $3250 for a two-bedroom apartment. This figure represents 24.9% of the median household income in the area, which stands at $156,321. However, the actual rental prices in the market significantly exceed these FMRs. For instance, the Zillow median price for a two-bedroom rental unit is $588,123, translating to a monthly rent that is approximately 15.1 times higher than the FMR. This stark difference between FMR and actual rents imposes significant constraints on voucher holders. The $3250 FMR is likely insufficient to cover the cost of renting a typical two-bedroom unit in the area, leading to a scarcity of available units that accept Section 8 vouchers. Consequently, voucher holders face challenges in finding affordable housing options that meet their needs. #### Affordability & Renter Profile ZIP code 92129 has a population of 52,965, with 27.9% of residents being renters. The occupancy rate of 96.2% suggests that the rental market is quite tight, indicating a high demand for rental properties. Given the median household income of $156,321, the majority of residents can afford the high rental prices, but the 27.9% who are renters may struggle, especially those relying on Section 8 vouchers. The affordability gap is evident when comparing the FMR to the actual rental prices. With the Zillow median price for a two-bedroom unit being $588,123, the average monthly rent would be around $4901, far exceeding the $3250 FMR. This indicates that the market is highly competitive and not particularly favorable for low-income renters, including those with Section 8 vouchers. #### Investor Angle From an investor perspective, the ZIP code 92129 presents a challenging scenario when considering Section 8-focused investments. At the FMR of $3250 for a two-bedroom unit, it is unlikely that investors would achieve positive cash flow given the actual rental prices. The Zillow median price for a two-bedroom unit suggests that landlords could charge up to $4901 per month, which is substantially higher than the FMR. The investment grade in this ZIP code is relatively low for Section 8 properties due to the limited number of units that can be rented out at the FMR. Investors might find it difficult to secure tenants willing to pay the FMR while also facing competition from other landlords who can charge much higher rates. This makes the overall investment less attractive compared to areas where the FMR aligns more closely with actual rental prices. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should consider focusing on smaller units such as one-bedroom apartments. The FMR for a one-bedroom unit is $2660, which is still a fraction of the actual rental prices. While this may limit the potential rental income, it increases the likelihood of securing tenants with Section 8 vouchers. 2. **Target Lower Price Points**: Investors should look for properties that are priced below the market average. For example, if a two-bedroom unit is listed for $4500 per month, it is closer to the FMR and thus more likely to attract voucher holders. This strategy requires careful selection of properties and negotiation skills to acquire units at lower price points. 3. **Consider Subsidized Housing Programs**: In addition to Section 8 vouchers, investors might explore other subsidized housing programs that offer higher rent subsidies. These programs can help bridge the gap between FMR and actual rental prices, making the investment more viable. #### Bottom Line Given the high price-to-FMR ratio and the tight rental market in ZIP code 92129, the recommendation for Section 8-focused investors is to **skip** this ZIP code. The discrepancy between the FMR and actual rental prices makes it challenging to achieve positive cash flow, and the limited availability of units that accept Section 8 vouchers reduces the potential tenant pool. Investors looking to enter the Section 8 market would be better served by exploring areas with a more favorable alignment between FMR and actual rental prices.

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.