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)
The Section 8 thesis in ZIP code 92266 is centered around the disparity between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $1040, while the Census ACS reports the market rent at $1,083. This creates a gap of $43, or 4.1%, between what landlords can charge voucher tenants and the prevailing market rate.
Given that the FMR is lower than the market rent, landlords who accept Section 8 vouchers must be prepared to rent their properties below the open-market rates. This means that for every unit rented through the Section 8 program, landlords will forfeit $43 per month compared to renting it at the market price. Over the course of a year, this translates into a loss of $516 per unit. However, the stability and security of rental income provided by the federal government can offset this financial impact, making it an attractive option for landlords looking for consistent cash flow.
The ZIP code 92266 has a 100.0% rental rate, indicating that all housing units are rented out, with no median home value or median income data available. This high rental rate suggests a robust demand for rental housing, which could be met partially by Section 8 voucher holders. Despite the lower rent, the guaranteed nature of the payments and the steady stream of income make it a viable strategy for landlords and small-portfolio investors.
However, the decision to participate in the Section 8 program should also consider the administrative burden and potential maintenance costs associated with housing voucher tenants. The program's requirements can be stringent, and landlords must ensure compliance to avoid penalties. Additionally, the long-term outlook should factor in the possibility of FMR adjustments, which could either widen or narrow the gap between FMR and market rent.
In conclusion, while the FMR is currently $43 below the market rent in ZIP 92266, the benefits of stable tenancy and government-backed payments can outweigh the cost of renting below market rates. Landlords should carefully weigh these factors before deciding to participate in the Section 8 program.
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.