Section 8 Fair Market Rent (FMR) for ZIP 91786 - 2027

Investment Score for ZIP 91786

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	$1,950
1 Bedroom	$2,080
2 Bedrooms	$2,560
3 Bedrooms	$3,370
4 Bedrooms	$4,060
5 Bedrooms	$4,710
6 Bedrooms	$5,275
7 Bedrooms	$5,697
8 Bedrooms	$5,982

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	$2,080	$494,346	0.42%	F
2BR	$2,560	$532,267	0.48%	F
3BR	$3,370	$706,658	0.48%	F
4BR	$4,060	$805,085	0.5%	F
5BR	$4,710	$905,948	0.52%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 91786 (Upland, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for Upland, CA (ZIP code 91786) in 2026 indicate that the maximum allowable rent for a two-bedroom unit is $2,740. However, the Zillow median price for a two-bedroom home in this area is $544,218, which translates to a price-to-FMR ratio of 16.6x. This means that the actual market rents are significantly higher than what is covered by the Section 8 vouchers. For instance, if a property owner were to charge the Zillow median price for a two-bedroom unit, it would be approximately $2,100 per month ($544,218 / 260 months, assuming a 22-year mortgage). This is already above the FMR limit, indicating that voucher holders face significant constraints in finding affordable housing. #### Affordability & Renter Profile With a median household income of $92,458 and a renter population percentage of 54.1%, Upland has a substantial number of residents who rely on rental properties. The occupancy rate of 97.1% suggests that the market is quite tight, with very few vacant units available. Given that 35.6% of the median income is allocated towards a two-bedroom unit at FMR, it becomes clear that renters in this area must be financially disciplined to afford even the subsidized rates. The high renter percentage and occupancy rate indicate a strong demand for rental properties, but the affordability issue is exacerbated by the high market rents compared to the FMR. #### Investor Angle From an investor perspective, the key question is whether the FMR can support positive cash flow. With the FMR for a two-bedroom unit set at $2,740, investors need to assess if they can achieve positive cash flow at this rate. Considering the Zillow median price for a two-bedroom home is $544,218, the monthly mortgage payment (assuming a 22-year mortgage) would be around $2,100. Property taxes, insurance, maintenance, and other expenses would likely push the total cost above the FMR limit, making it challenging to generate positive cash flow solely based on FMR rates. The investment grade for this ZIP code is mixed. On one hand, the high occupancy rate and significant renter population suggest strong demand. On the other hand, the high market rents and low FMR limits create a challenging environment for investors relying on Section 8 vouchers. The price-to-FMR ratio of 16.6x indicates that the market is highly inflated relative to the government's subsidy levels, which could deter potential investors looking for stable returns through Section 8 participation. #### Specific Actionable Insights 1. **Target Properties Below Market Value**: Investors should focus on acquiring properties that are priced below the Zillow median value. For example, a two-bedroom home priced at $450,000 would have a monthly mortgage payment of approximately $1,750, allowing for a positive cash flow when rented at the FMR of $2,740. 2. **Consider Smaller Units**: Given the high price-to-FMR ratio, smaller units such as one-bedroom apartments might offer better opportunities for cash flow. The FMR for a one-bedroom unit is $2,210, which is still lower than the market rent but closer to the mortgage payment for a similarly priced property. 3. **Diversify Tenant Base**: To mitigate risks associated with the high market rents and low FMR limits, investors should consider diversifying their tenant base beyond just Section 8 voucher holders. This could include offering market-rate rentals or exploring other government assistance programs that might provide higher subsidies. #### Bottom Line Given the high market rents and the tight constraints imposed by the FMR limits, the recommendation for Section 8-focused investors is to **Skip** this ZIP code unless they can acquire properties at significantly discounted prices. The current market conditions make it difficult to achieve positive cash flow strictly through Section 8 participation, and the high price-to-FMR ratio indicates that the market is not aligned with the subsidy levels provided by the program. Investors seeking stability and positive returns should look elsewhere or consider alternative strategies to complement their Section 8 portfolio.

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.