Section 8 Fair Market Rent (FMR) for ZIP 91765 - 2027

Investment Score for ZIP 91765

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$2,700
1 Bedroom	$3,010
2 Bedrooms	$3,720
3 Bedrooms	$4,720
4 Bedrooms	$5,280
5 Bedrooms	$6,125
6 Bedrooms	$6,860
7 Bedrooms	$7,409
8 Bedrooms	$7,779

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$3,010	$338,983	0.89%	C
2BR	$3,720	$519,470	0.72%	D
3BR	$4,720	$904,260	0.52%	F
4BR	$5,280	$1,147,697	0.46%	F
5BR	$6,125	$1,547,580	0.4%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 91765 (Diamond Bar, CA) #### Section 8 Voucher Dynamics In ZIP code 91765, the Fair Market Rent (FMR) for a two-bedroom apartment is set at $3280 per month for 2026. This represents 37.3% of the median household income in Diamond Bar, which stands at $105,565. However, it is important to note that the actual rental market in this area is significantly higher. The Zillow median price for a two-bedroom home is $534,386, which translates into a rental cost that is approximately 13.6 times the FMR. This means that landlords who wish to participate in the Section 8 program must accept rents that are far below the market rate. For example, a two-bedroom unit priced at $534,386 would likely rent for around $4450 per month ($534,386 / 13.6), which is well above the $3280 FMR. Consequently, voucher holders face significant constraints in finding suitable housing, as the vast majority of available units exceed the FMR. #### Affordability & Renter Profile The population of Diamond Bar is 44,502, with 22.5% of residents being renters. Given the occupancy rate of 94.7%, it is clear that the rental market is quite tight. The high median household income suggests that many residents can afford homes in the local market, but the 22.5% renter population indicates a segment of the community that relies on rental properties. These renters are likely to be young professionals, families with lower incomes, or individuals who prefer renting over buying due to lifestyle choices. The affordability challenge is stark, as the FMR for a two-bedroom unit is only about 61.4% of the actual median rental price ($3280 vs. $5343). This gap makes it difficult for voucher holders to find affordable housing, especially since the market is already tight. #### Investor Angle From an investor perspective, participating in the Section 8 program in ZIP 91765 can be challenging. The FMR for a two-bedroom unit is $3280, while the actual median rental price is closer to $5343. This implies that landlords accepting Section 8 vouchers will need to operate at a significant discount to market rates. To determine if this ZIP is cash-flow positive at FMR, we need to consider the typical operating costs of a rental property. Assuming a conservative estimate of 50% of the rental income going towards expenses (including mortgage payments, maintenance, insurance, and property taxes), the net income would be $1640 per month for a two-bedroom unit. This is a substantial reduction compared to the potential market-based net income of $2671.50 ($5343 * 0.5). Therefore, the investment grade for Section 8-focused properties in this ZIP is low, as the returns are significantly lower than those achievable by renting at market rates. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should focus on smaller units such as one-bedroom apartments. The FMR for a one-bedroom unit is $2630, which is still a considerable discount from the market rate but may offer better cash flow opportunities. Additionally, there is a higher demand for smaller units among voucher holders, making these properties more attractive for the Section 8 program. 2. **Consider Location-Specific Strategies**: Investors should look for areas within ZIP 91765 where the rental market is slightly less competitive. For instance, neighborhoods with more affordable housing options or areas near public transportation might have lower rental prices, allowing for a better alignment between market rates and FMR. 3. **Explore Mixed-Income Developments**: Developing mixed-income housing projects can be a viable strategy. By including a mix of market-rate and Section 8 units, investors can balance their portfolio and ensure a steady cash flow. This approach also helps in addressing the affordability gap and provides more options for voucher holders. #### Bottom Line Based on the analysis, the recommendation for Section 8-focused investors in ZIP 91765 is to **Skip** this market. The high price-to-FMR ratio and tight rental market make it challenging to achieve positive cash flow, and the limited number of units that fall within the FMR range further complicates the situation. Investors looking to participate in the Section 8 program should consider other ZIP codes with more favorable conditions for both affordability and cash flow. --- This analysis provides a comprehensive overview of the rental market dynamics in ZIP 91765, focusing specifically on the challenges and opportunities for Section 8 voucher holders and investors. The high price-to-FMR ratio and tight market conditions suggest that this ZIP is not ideal for those seeking to invest in Section 8 properties.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.