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 | $1,670 |
| 1 Bedroom | $1,780 |
| 2 Bedrooms | $2,190 |
| 3 Bedrooms | $2,890 |
| 4 Bedrooms | $3,470 |
| 5 Bedrooms | $4,025 |
| 6 Bedrooms | $4,508 |
| 7 Bedrooms | $4,869 |
| 8 Bedrooms | $5,112 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,780 | $293,765 | 0.61% | D |
| 2BR | $2,190 | $443,759 | 0.49% | F |
| 3BR | $2,890 | $624,986 | 0.46% | F |
| 4BR | $3,470 | $1,018,828 | 0.34% | F |
| 5BR | $4,025 | $1,830,863 | 0.22% | F |
U.S. Census Bureau data (2024)
The Section 8 housing market in ZIP code 92260, Palm Desert, CA, offers a balanced investment opportunity for landlords and small-portfolio investors. The HUD Fair Market Rent (FMR) for this area in fiscal year 2024 is set at $2,120, while the market rent, measured by Zillow's ZORI, stands at $2,361. This indicates that voucher tenants will generally cashflow at the FMR, but only marginally given the slight gap between the two figures.
To further analyze the investment potential, consider the median home value in the region, which is $589,945. Using this figure, we can calculate the rent-to-price ratio, which comes out to approximately 0.04%. This suggests that rental income represents a modest portion of the total property value, indicating a market where homeownership remains attractive despite the rental options available.
The rental market dynamics in Palm Desert also reflect a strong demand for rental properties. With a median Days on Market (DOM) of just 48 days, it is evident that properties are quickly occupied once listed. Additionally, the low price-cut share of 0.3% indicates that landlords do not typically need to reduce rents to attract tenants, reinforcing the stability of rental income in the area.
In summary, the strongest angle for investors in ZIP 92260 is likely stability. Despite the marginal cashflow from voucher tenants, the robust demand for rentals and the minimal need for price adjustments ensure consistent income streams. This makes Palm Desert an attractive location for those seeking reliable, long-term rental investments.
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.