Location: El Centro, CA | Metro: El Centro, CA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,000 |
| 1 Bedroom | $1,100 |
| 2 Bedrooms | $1,440 |
| 3 Bedrooms | $1,940 |
| 4 Bedrooms | $2,410 |
| 5 Bedrooms | $2,796 |
| 6 Bedrooms | $3,132 |
| 7 Bedrooms | $3,383 |
| 8 Bedrooms | $3,552 |
U.S. Census Bureau data (2024)
ZIP 92231, located within the El Centro, CA MSA, presents a strategic opportunity for landlords and small-portfolio investors focused on Section 8 housing. This ZIP code is best categorized as a cash-flow anchor.
The rationale for this classification stems from the favorable financial metrics associated with the area. The Fair Market Rent (FMR) for ZIP 92231 in fiscal year 2024 is set at $1380, which exceeds the current market rent of $1,092. This $288 difference per unit annually ensures a steady and reliable cash flow, making it an ideal location for securing long-term rental income.
In addition to the strong rent differential, the median home value in ZIP 92231 stands at $391,746. This figure indicates that property values are relatively stable, reducing the risk of significant capital losses. While appreciation plays can offer higher returns, they often come with greater volatility and uncertainty. ZIP 92231 provides a safer bet for those looking to ensure consistent cash flows.
The low price-cut share of 0.2% and the lack of data on days on market (DOM) suggest that the rental market in this area is competitive but not overly saturated. Landlords can expect to maintain their rental rates without frequent concessions or prolonged vacancy periods.
Furthermore, with a renter share of 49.8%, there is a substantial demand for rental properties, including those supported by Section 8 vouchers. The median income of $49,742 aligns well with the eligibility criteria for Section 8, ensuring a steady stream of qualified tenants.
In summary, ZIP 92231 serves as a solid cash-flow anchor within a Section 8 portfolio strategy due to its favorable rent-to-FMR spread and stable property values. It offers landlords and investors a reliable investment option with minimal risk and predictable returns.
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.