Location: El Centro, CA | Metro: El Centro, CA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $850 |
| 1 Bedroom | $940 |
| 2 Bedrooms | $1,230 |
| 3 Bedrooms | $1,670 |
| 4 Bedrooms | $2,060 |
| 5 Bedrooms | $2,390 |
| 6 Bedrooms | $2,677 |
| 7 Bedrooms | $2,891 |
| 8 Bedrooms | $3,036 |
U.S. Census Bureau data (2024)
In analyzing whether landlords should invest in ZIP code 92233 for Section 8 properties, follow this decision tree based on the provided data:
1) Does the Fair Market Rent (FMR) of $1080 cover the debt service on a $263,042 property?
Yes. The FMR of $1080 per month can clear the debt service for a property valued at $263,042. This means that the rental income generated under the Section 8 program would be sufficient to meet mortgage payments and other associated costs.
No. If the FMR does not cover the debt service, purchasing in ZIP 92233 is not advisable for Section 8 investments. The landlord would need to seek out lower-cost properties or consider other ZIP codes where the FMR is higher relative to property values.
It depends. This scenario would arise if the landlord's debt service exceeds the FMR but is close enough that additional non-rental income could bridge the gap. However, with the given figures, the FMR clearly covers the expected debt service, making this a straightforward yes.
2) How does the market rent of $929 compare to the FMR?
Above. If the market rent were above the FMR, landlords would face challenges renting properties under the Section 8 program since they would need to accept a lower rate. However, the market rent of $929 is below the FMR of $1080, indicating that Section 8 rates are competitive and potentially attractive compared to the local market.
At or Below. With the market rent at $929, which is below the FMR, landlords can confidently offer their properties under the Section 8 program without risking significant loss compared to market rates.
3) Is there enough demand with 35.3% of residents being renters and N/A-day days on the market (DOM)?
Yes. Given that 35.3% of residents are renters and assuming a low DOM indicates quick turnover, there appears to be a solid demand for rental properties in ZIP 92233. This suggests that finding tenants for Section 8 properties would not be difficult.
No. If the percentage of renters were significantly lower or if the DOM was high, indicating slow rental activity, then demand might be insufficient. However, the data provided supports a positive outlook on demand.
It depends. While the renter percentage is favorable, the absence of DOM data introduces uncertainty. Landlords should investigate further to ensure that properties are indeed rented quickly. Nonetheless, with 35.3% of residents renting, the overall demand signal is strong.
Based on the analysis, landlords should consider investing in ZIP 92233 for Section 8 properties. The FMR comfortably clears debt service on a $263,042 property, is above the market rent, and there is a reasonable percentage of renters, suggesting sufficient demand. However, due diligence on DOM trends and local rental market conditions is advised to confirm the investment thesis.
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.