Location: Riverside-San Bernardino-Ontario, CA | Metro: Riverside-San Bernardino-Ontario, CA MSA
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $2,050 |
| 1 Bedroom | $2,180 |
| 2 Bedrooms | $2,690 |
| 3 Bedrooms | $3,540 |
| 4 Bedrooms | $4,270 |
| 5 Bedrooms | $4,953 |
| 6 Bedrooms | $5,547 |
| 7 Bedrooms | $5,991 |
| 8 Bedrooms | $6,291 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,180 | $316,858 | 0.69% | D |
| 2BR | $2,690 | $495,476 | 0.54% | F |
| 3BR | $3,540 | $756,331 | 0.47% | F |
| 4BR | $4,270 | $900,529 | 0.47% | F |
| 5BR | $4,953 | $1,067,606 | 0.46% | F |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP 91701, Rancho Cucamonga, CA, provides a clear picture of potential returns for landlords and small-portfolio investors. Using the Fair Market Rent (FMR) for a two-bedroom apartment at $2670 annually and the Zillow Observed Rent Index (ZORI) at $2,591 annually, we can derive the gross yield against the median home value of $844,679.
First, let's calculate the gross yield using the FMR. With an annualized rent of $2670, the gross yield is calculated as follows:
Next, using the ZORI for the same calculation:
Given the 22.5% renter density and the 18-day Days on Market (DOM), it's evident that the ZORI scenario is more realistic. The lower gross yield of 0.31% derived from ZORI reflects the actual market conditions better than the slightly higher FMR-based yield of 0.32%. This is because ZORI is based on observed rents, which tend to be more accurate in representing the true rental market dynamics.
The difference between these yields is minimal, indicating that while there might be some variation in the rental income, the overall impact on the cap rate is negligible. Landlords and investors should focus on the stability and security of rental income rather than the slight variations in gross yield. Given the relatively low DOM of 18 days, it suggests a competitive rental market where properties are quickly occupied, reducing vacancy rates and increasing the likelihood of achieving closer to ZORI levels of rent.
In conclusion, the gross yield for a two-bedroom property in ZIP 91701 is approximately 0.31% when using ZORI, which is the more realistic scenario given the local rental market conditions. This yield must be considered alongside other factors such as maintenance costs, property management fees, and financing terms to determine the net operating income (NOI) and ultimately the cap rate.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.