Location: San Diego-Chula Vista-Carlsbad, CA | Metro: San Diego-Chula Vista-Carlsbad, CA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $3,280 |
| 1 Bedroom | $3,500 |
| 2 Bedrooms | $4,230 |
| 3 Bedrooms | $5,610 |
| 4 Bedrooms | $6,780 |
| 5 Bedrooms | $7,865 |
| 6 Bedrooms | $8,809 |
| 7 Bedrooms | $9,514 |
| 8 Bedrooms | $9,990 |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) set by HUD for ZIP 92135 in fiscal year 2024 is $4210. However, the current market rent for the area is not explicitly stated in the sources provided. To determine whether voucher tenants will cashflow at the FMR, marginally, or only with premium units, we need to compare the FMR against the actual market rents. Given the high real estate prices in San Diego, it is likely that the FMR will only cover the costs of lower-end or older units. Therefore, voucher tenants will likely cashflow marginally, if at all, unless the investor focuses on premium units.
The median home value in the broader San Diego-Chula Vista-Carlsbad MSA is $846,372. This figure helps us derive the rent-to-price ratio, which is crucial for understanding the local housing market dynamics. Assuming the median home value in ZIP 92135 is similar, the rent-to-price ratio would be approximately 5.56%, calculated as $4210 annual rent divided by $846,372 home value. This ratio indicates that rental income is relatively low compared to home values, suggesting that the area may favor homeownership over renting.
The specific data on the number of days on market (DOM) and the percentage of price cuts for listings in ZIP 92135 was not clearly provided. However, understanding these metrics can help gauge the local rental versus buying dynamics. If the DOM is high and the percentage of price cuts is significant, it might indicate a challenging rental market where investors need to be cautious about their pricing strategies.
In summary, Section 8 investors in ZIP 92135 will likely find the most success with premium units, given the high real estate prices and the relatively low FMR. The strongest angle for investors in this area is stability, as the high median home values suggest a robust local economy capable of supporting consistent rental incomes.
Data Sources: FMR data from HUD (2027). 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.