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: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,990 | $565,557 | 0.35% | F |
| 3BR | $2,630 | $707,784 | 0.37% | F |
U.S. Census Bureau data (2024)
The real estate landscape in Morongo Valley, CA (ZIP 92268), is marked by a median home value of $559,373. This figure serves as a critical anchor point for understanding both the sale and rental dynamics of the area. Despite the median home value, the percentage of listings that have been reduced and the median days on market (DOM) remain unspecified, suggesting a stable market where homes are likely selling close to their asking prices. The absence of significant reductions in listing prices indicates strong seller pricing power, which could persist over the next 12-24 months given the current stability.
On the rental side, the Federal Market Rent (FMR) for FY 2024 is set at $1,580, whereas the actual market rent stands at $1,847 according to the Census ACS. This gap between the FMR and market rents signals a potential challenge for Section 8 landlords, who might see lower reimbursement rates compared to the local market rates. However, it also suggests that there is a demand for rental properties that exceeds the supply covered by the FMR, indicating that landlords maintaining competitive rents can still attract tenants despite the reimbursement discrepancy.
For long-term investors considering holding onto properties in Morongo Valley, the setup implies a cautious approach to appreciation expectations. While the median home value is robust, the lack of specific data regarding reductions and DOM makes it difficult to predict a definitive upward trajectory. Instead, investors should focus on the steady rental income and the potential for capital appreciation driven by broader economic factors rather than localized trends. The current market conditions suggest that while rapid price increases are not guaranteed, the combination of stable home values and above-average rental rates provides a solid foundation for long-term investment.
Investors should also be aware of the rental market's dynamics, particularly the gap between FMR and market rents. This scenario could impact the profitability of Section 8 properties, necessitating careful management to balance between attracting tenants and maximizing returns. Overall, the real estate environment in Morongo Valley presents a balanced opportunity for those looking to invest in a stable market with a focus on rental income and moderate appreciation potential.
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.