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 | $1,660 |
| 1 Bedroom | $1,770 |
| 2 Bedrooms | $2,180 |
| 3 Bedrooms | $2,870 |
| 4 Bedrooms | $3,460 |
| 5 Bedrooms | $4,014 |
| 6 Bedrooms | $4,496 |
| 7 Bedrooms | $4,856 |
| 8 Bedrooms | $5,099 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,770 | $262,923 | 0.67% | D |
| 2BR | $2,180 | $434,768 | 0.5% | F |
| 3BR | $2,870 | $893,811 | 0.32% | F |
| 4BR | $3,460 | $1,690,473 | 0.2% | F |
| 5BR | $4,014 | $2,241,767 | 0.18% | F |
U.S. Census Bureau data (2024)
The ZIP code 92264, located in Palm Springs, California, presents an interesting scenario when analyzing rental affordability from the tenant's viewpoint. The median household income here is $77,688. However, the market rate for rentals, measured by Zillow's Rent Index (ZORI), stands at $2,253 per month. This suggests that the average household would spend approximately 35% of their annual income on rent alone, which is higher than the recommended threshold of 30%.
Comparatively, the Fair Market Rent (FMR) for ZIP 92264 as of fiscal year 2024 is set at $2,110. This figure is slightly below the market rate, indicating that while the voucher system aims to make housing more affordable, it still falls short of the actual market conditions in Palm Springs. For tenants relying on vouchers, the difference between the market rate and the voucher amount means they have limited options and must often settle for properties that are priced closer to the FMR or negotiate with landlords.
With 31.2% of the population renting and a total population of 19,899, the affordability gap poses significant challenges for both tenants and landlords. Tenants face a competitive landscape where finding a suitable property within budget constraints is difficult, leading to a potential mismatch between demand and supply. Landlords, on the other hand, might find themselves in a position where accepting voucher payments becomes necessary to fill vacancies, especially in a market where cash-paying tenants are fewer due to high rents relative to income levels.
The takeaway for landlords considering voucher versus cash-pay strategies is clear: while cash-paying tenants provide a smoother transaction process, the reality of the ZIP 92264 market indicates that landlords who are willing to accept vouchers will likely have a better chance of securing long-term tenants. The slight discrepancy between the market rate and the FMR also suggests that landlords should be prepared to adjust their pricing expectations if they wish to attract voucher holders, thereby ensuring a steady stream of rental income despite the bureaucratic processes involved in voucher transactions.
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.