Section 8 Fair Market Rent (FMR) for ZIP 92236 - 2027

Investment Score for ZIP 92236

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	$1,530
1 Bedroom	$1,600
2 Bedrooms	$1,990
3 Bedrooms	$2,630
4 Bedrooms	$3,170
5 Bedrooms	$3,677
6 Bedrooms	$4,118
7 Bedrooms	$4,447
8 Bedrooms	$4,669

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,990	$320,548	0.62%	D
3BR	$2,630	$399,561	0.66%	D
4BR	$3,170	$450,698	0.7%	D
5BR	$3,677	$546,625	0.67%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 92236 (Coachella, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for Coachella, CA (ZIP 92236), as of 2026, is set at $2080 for a two-bedroom unit. This amount represents 36.5% of the median household income in the area, which is $68,393. The FMR is designed to reflect the average rent for a modest apartment in a given area, but it often falls short of actual rental costs. In Coachella, the FMR for a two-bedroom unit is notably lower than the actual median rent reported by Zillow, which stands at $320,493. This significant gap means that tenants using Section 8 vouchers would likely face substantial constraints in finding suitable housing. The price-to-FMR ratio of 12.8x indicates that the median home value is much higher than the FMR for rental units. For instance, the median home value for a two-bedroom property is approximately $320,493, while the FMR for renting such a property is only $2080. This suggests that landlords might be reluctant to accept Section 8 vouchers due to the low rental rates compared to potential home values. #### Affordability & Renter Profile In Coachella, 36.1% of households are renters, indicating a moderate rental market presence. The occupancy rate of 98.4% suggests that the rental market is quite tight, with very few vacant units available. Given the median household income of $68,393, the FMR for a two-bedroom unit at $2080 is relatively affordable, representing just over 36% of the median income. However, the actual median rent of $320,493 is far beyond what most residents can afford, especially those relying on Section 8 vouchers. The high occupancy rate and the fact that the median rent is significantly higher than the FMR suggest that the market is undersupplied, particularly for affordable housing. This makes it challenging for voucher holders to find units within their budget, as many landlords may prefer higher-paying tenants who do not use vouchers. #### Investor Angle From an investor perspective, the ZIP code 92236 presents mixed opportunities. The FMR for a two-bedroom unit is $2080, which is substantially lower than the actual median rent of $320,493. This implies that properties rented at the FMR level may struggle to generate positive cash flow, especially when considering mortgage payments, maintenance costs, and other expenses associated with property ownership. Given the high price-to-FMR ratio of 12.8x, the investment grade for properties in this ZIP code is likely to be low for Section 8-focused investors. The high cost of purchasing a property relative to the rental income it can generate under the FMR guidelines means that returns on investment could be minimal or negative. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should consider focusing on smaller units such as one-bedroom or studio apartments. These units have lower FMRs ($1670 and $1600 respectively) and may be more attractive to voucher holders. Additionally, these units may have lower purchase costs and could potentially generate better cash flow. 2. **Consider Alternative Financing Options**: Due to the high cost of homes relative to rental income, traditional financing methods may not be viable. Investors should explore alternative financing options such as hard money loans, private lenders, or creative financing structures to reduce the overall cost burden and improve the chances of achieving positive cash flow. 3. **Develop Relationships with Local Landlords**: Since the market is tight and many landlords may be hesitant to accept Section 8 vouchers, building relationships with local landlords can be beneficial. By understanding their needs and concerns, investors can negotiate terms that make accepting vouchers more appealing, such as longer lease agreements or higher security deposits. #### Bottom Line For Section 8-focused investors, the ZIP code 92236 (Coachella, CA) is generally not recommended for buying properties. The high price-to-FMR ratio and the tight rental market make it difficult to achieve positive cash flow. Instead, investors should consider holding onto existing properties or skipping this ZIP code altogether in favor of areas with more favorable conditions for Section 8 rentals. If investing in Coachella, focus on smaller units and explore alternative financing options to mitigate risks.

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.