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 | $1,620 |
| 2 Bedrooms | $2,000 |
| 3 Bedrooms | $2,640 |
| 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: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,620 | $198,533 | 0.82% | C |
| 2BR | $2,000 | $441,452 | 0.45% | F |
| 3BR | $2,640 | $798,865 | 0.33% | F |
| 4BR | $3,170 | $1,046,911 | 0.3% | F |
| 5BR | $3,677 | $2,442,581 | 0.15% | F |
U.S. Census Bureau data (2024)
ZIP code 92262, located in Palm Springs, CA, falls within the larger Riverside-San Bernardino-Ontario, CA MSA. The Fair Market Rent (FMR) for ZIP 92262 is set at $1,920 for fiscal year 2024, while the market rent stands slightly higher at $1,993. This indicates that the rental prices in Palm Springs are closely aligned with what the government deems fair for the area, suggesting a stable rental market.
The median home value in ZIP 92262 is $645,743, which is a significant figure but not necessarily indicative of the overall cost structure of the area when compared to other ZIP codes within the MSA. The renter share, at 35.7%, is above average for many metropolitan areas, signaling a strong demand for rentals. This combination of a high renter share and median home values suggests that ZIP 92262 is neither a value pocket nor a premium sub-market, but rather a mid-tier neighborhood within the MSA.
A notable point of divergence is the relatively high renter share coupled with home values that are not exceptionally high compared to some premium markets within the same MSA. This characteristic can be seen as advantageous for landlords and small-portfolio investors looking to balance between occupancy rates and investment returns. While the home values are substantial, they do not reach the heights of premium sub-markets, which often have significantly higher property values and lower renter shares. Therefore, ZIP 92262 presents an opportunity where the rental income is likely to be steady and competitive, without the risks associated with either extremely high or low home values.
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.