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 | $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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,990 | $144,229 | 1.38% | A |
| 3BR | $2,630 | $225,069 | 1.17% | B |
U.S. Census Bureau data (2024)
To integrate ZIP 92242, located in Earp, CA, into a Section 8 portfolio strategy, one must consider its unique characteristics and how they align with investment goals. Earp, CA, falls within the larger Riverside-San Bernardino-Ontario, CA MSA metro area, offering a mix of opportunities for both cash flow and diversification.
Earp, CA, is best positioned as a cash-flow anchor. The Federal Market Rent (FMR) for ZIP 92242 in fiscal year 2024 is set at $1580, significantly higher than the market rent of $842. This spread means that properties rented through the Section 8 program can generate a substantial positive cash flow for landlords. The median home value in the area is $200,772, which is relatively low compared to other parts of California, making it easier to acquire properties without a significant upfront capital investment.
The high FMR relative to market rent ensures that landlords can cover their mortgage payments, maintenance costs, and other expenses while still earning a profit. Additionally, the median income in ZIP 92242 is $37,500, which aligns well with the income limits for the Section 8 program, ensuring a steady demand for subsidized housing units.
While appreciation plays are typically characterized by rapidly rising home values and short days on market (DOM), there is currently insufficient data to suggest that ZIP 92242 offers such opportunities. The price-cut share and DOM figures are listed as N/A, indicating a lack of recent sales activity that would provide insights into potential appreciation.
Earp, CA, also serves as a diversifier due to its 17.7% renter share. This percentage suggests a moderate level of renters, balancing the risk between areas with very high renter shares and those dominated by homeowners. Diversifying a portfolio with properties in ZIP 92242 helps mitigate risks associated with tenant turnover and local economic fluctuations.
In conclusion, ZIP 92242 is most effectively utilized as a cash-flow anchor within a Section 8 portfolio strategy. The $1580 FMR provides a reliable source of income that exceeds the $842 market rent, allowing landlords to maintain profitability even as they manage the administrative aspects of the Section 8 program. The low median home value of $200,772 and median income of $37,500 further support this strategy by ensuring a stable tenant pool and reasonable property acquisition costs.
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.