Short answer: In San Diego, CA, the median home value is $980,700 and the median 3-bedroom rents for $3,052/mo (Census ACS 2024). That's a rent-to-price ratio of 0.31%, so it misses the 1% rule and ranks #43 of the 50 largest US rental markets. With 20% down at 7.40%, FirstDoor scores a median-priced home Pass (−$3,847/mo cash flow).
Key numbers
The 1% rule in San Diego
Before running a full analysis, many investors check whether rent is at least 1% of price. This is where San Diego lands.
Across all rentals (not just 3-bedrooms) the ratio is 0.25%. A home renting for the median 3-bedroom rent would need to cost about $305,000 or less to pass.
A typical San Diego home, scored
We took a home at the median value, gave it the median 3-bedroom rent, and ran it through the same math as the FirstDoor calculator: 20% down, a 30-year loan at 7.40%, the city's median tax rate, and standard expense budgets.
| 3-bedroom rent (median) | $3,052 |
| Property tax ($6,111/yr, local median) | −$509 |
| Insurance ($4,900/yr, assumed) | −$408 |
| Vacancy 5% · Maintenance 5% · Management 8% | −$549 |
| Net operating income | $1,585 |
| Mortgage (P&I on $784,560 at 7.40%) | −$5,432 |
| Monthly cash flow | −$3,847 |
What price works in San Diego?
Same rent, different prices. Here's the most you could pay in San Diego for each result, keeping the median 3-bedroom rent and local tax rate.
Takeaways
- San Diego's 0.31% ratio is a long way from the 1% rule (#43 of 50). Most investors here are betting on appreciation, not monthly income.
- A median-priced home here would cost you about $3,847/mo out of pocket after the mortgage and every expense. To break even you'd need to pay about $387,000, 61% below the median.
- Prices are outrunning rents: home values rose 6.1% from 2023 to 2024 while 3-bedroom rent rose 3.0%. The 1% math got tougher.
- Renters already spend a median 32.4% of income on rent, so don't count on big rent increases.
Frequently asked questions
Does San Diego pass the 1% rule?
No, on typical numbers. The median 3-bedroom gross rent is $3,052/mo and the median home value is $980,700 (Census ACS 2024 1-year), a ratio of 0.31%. To pass at that rent, a home would need to cost about $305,000 or less.
What is the typical rent for a 3-bedroom in San Diego?
The median gross rent for a 3-bedroom in San Diego, CA is $3,052 a month, and $2,414 across all rentals (Census ACS 2024 1-year). Gross rent includes utilities the renter pays, so the landlord's share can be a bit lower. The 3-bedroom median rose 3.0% from 2023.
Can you cash flow a rental in San Diego?
At the median price, not easily. With 20% down at 7.40% and realistic expenses, a $980,700 home renting for $3,052 loses about $3,847/mo. It breaks even at roughly $387,000.
How much cash do you need to buy a typical rental in San Diego?
About $225,540: a 20% down payment of $196,140 plus closing costs we assume at 3% ($29,400). Lenders often also want several months of reserves. Investment loans commonly need 15–25% down.
Is San Diego a good place to buy a first rental?
FirstDoor scores a median-priced home in San Diego as Pass (0 of 8 points). That's a starting point, not a verdict on every listing: neighborhoods vary, and buying below the median changes the math. Run any listing through the free calculator.
Compare similar markets
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Sources
Data: U.S. Census Bureau, 2024 American Community Survey 1-year estimates (released September 2025); year-over-year changes compare with 2023. Mortgage rate: Freddie Mac PMMS, week of October 15, 2026. Retrieved October 15, 2026. Insurance ($4,900/yr), closing costs (3%), maintenance (5%) and management (8%) are FirstDoor assumptions, not local data. Investment-property loans often price above the PMMS average. Medians describe the whole city, not any one home. Educational content, not financial advice.