Recent federal data reveals that taxpayers may unwittingly be subsidizing California’s rental market to the tune of $7,030 monthly for homes situated near the U.S.-Mexico border.
Under the auspices of the federal Section 8 housing voucher program, families are generally expected to allocate 30% of their income toward housing expenses, with the remainder covered by federal assistance. These vouchers are designed to be mobile, allowing tenants the flexibility to relocate to “Opportunity Neighborhoods” that offer access to jobs, public transportation, and quality education.
In San Diego County, three ZIP Codes boast fair market rents that exceed $7,000 for a four-bedroom residence. This includes the upscale coastal enclave of Del Mar, home to high-profile figures such as Microsoft’s Bill Gates and NFL star Aaron Rodgers, alongside the affluent Rancho Santa Fe, where celebrities like Bill Murray and Phil Mickelson reside. Interestingly, this exclusive club is joined by Chula Vista, a more modest community adjacent to the California-Mexico border.
The income limit for a family of five to qualify for Section 8 is pegged at $49,500, implying that such a family would need to contribute roughly $1,237.50 monthly toward the maximum fair market rent of $7,030, with the voucher covering the remaining balance of approximately $5,792.50.
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Per the U.S. Department of Housing and Urban Development (HUD), the Fair Market Rent (FMR) is calculated based on the 40th percentile rent, as determined by the American Community Survey conducted by the U.S. Census Bureau.
As of the end of March, there are four four-bedroom homes available for rent in Chula Vista’s 91914 ZIP code, listed on Zillow, with rental prices ranging from $3,800 to $10,000 per month. Notably, two of the listings are below the $7,030 threshold.
According to a report by the Center on Budget and Policy Priorities from January 2025, about 2.3 million households benefit from Section 8 vouchers, which are projected to cost
This setup illustrates a peculiar quirk of the housing assistance system: since the maximum voucher amounts are dictated by local rental prices, coastal regions that are both expensive and densely populated receive a significantly larger slice of the available funding pie.
Syndicated with permission from The Center Square.
