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 | $1,630 |
| 1 Bedroom | $1,730 |
| 2 Bedrooms | $2,130 |
| 3 Bedrooms | $2,810 |
| 4 Bedrooms | $3,380 |
| 5 Bedrooms | $3,921 |
| 6 Bedrooms | $4,392 |
| 7 Bedrooms | $4,743 |
| 8 Bedrooms | $4,980 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,730 | $285,833 | 0.61% | D |
| 2BR | $2,130 | $520,705 | 0.41% | F |
| 3BR | $2,810 | $684,764 | 0.41% | F |
| 4BR | $3,380 | $1,235,647 | 0.27% | F |
| 5BR | $3,921 | $2,148,325 | 0.18% | F |
U.S. Census Bureau data (2024)
A skeptical investor looking into ZIP 92253, La Quinta, California, might have several concerns regarding the viability of investing in rental properties under the Section 8 program. Here are some key objections and how the data addresses them:
Objection 1: Will Fair Market Rent (FMR) of $2,180 for the fiscal year 2024 cover the mortgage on a $746,832 home?
The FMR of $2,180 is set by the U.S. Department of Housing and Urban Development (HUD) to ensure that rental assistance covers a reasonable portion of housing costs in the area. However, the average price of a home in La Quinta, at $746,832, suggests that it would be difficult to find a property suitable for Section 8 tenants within this price range. A more realistic scenario for Section 8 investments would involve properties priced closer to the median rental value, which is much lower. To accurately assess whether the FMR will cover the mortgage, you need to consider the actual cost of the property being rented out under Section 8. For instance, if the property is valued at $300,000, the FMR is more likely to cover the mortgage.
Objection 2: Is there enough renter demand at 24.2%?
The percentage of renters in La Quinta stands at 24.2%. This figure indicates a moderate level of rental demand but does not necessarily reflect the specific demand for Section 8 properties. The overall rental market can be strong, yet the subset of potential Section 8 tenants may still face challenges in finding suitable housing. Therefore, while there is rental demand, the data does not provide a clear picture of how much of that demand is from individuals who qualify for Section 8 assistance. It's important to conduct further research into local tenant demographics and waitlist sizes for Section 8 properties to get a better understanding of the demand.
Objection 3: Will vouchers keep pace with market rents of $3,561?
The market rent of $3,561 is significantly higher than the FMR of $2,180. This discrepancy raises questions about whether Section 8 vouchers will be sufficient to cover these higher market rents. In areas with high market rents, landlords often struggle to make ends meet with the voucher amount alone. HUD periodically adjusts the FMR to reflect changes in the local housing market, but these adjustments may not always align with the rapid increases seen in some real estate markets. As such, it's crucial to monitor any updates to the FMR and consider the possibility of requiring additional rent payments from tenants to bridge the gap between the voucher amount and the actual market rent.
In summary, while ZIP 92253 presents opportunities for real estate investment, particularly in the rental sector, the data highlights certain challenges. Landlords should carefully evaluate the cost of properties they intend to rent out under Section 8, understand the specific demand for subsidized housing, and prepare for potential shortfalls in voucher coverage compared to market rents.
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.