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 | $1,540 |
| 1 Bedroom | $1,620 |
| 2 Bedrooms | $2,010 |
| 3 Bedrooms | $2,660 |
| 4 Bedrooms | $3,210 |
| 5 Bedrooms | $3,724 |
| 6 Bedrooms | $4,171 |
| 7 Bedrooms | $4,505 |
| 8 Bedrooms | $4,730 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,620 | $294,601 | 0.55% | F |
| 2BR | $2,010 | $527,692 | 0.38% | F |
| 3BR | $2,660 | $825,342 | 0.32% | F |
| 4BR | $3,210 | $1,429,614 | 0.22% | F |
| 5BR | $3,724 | $2,326,032 | 0.16% | F |
U.S. Census Bureau data (2024)
Rancho Mirage, located in ZIP code 92270, is a prime candidate for an appreciation play within a Section 8 portfolio strategy. The key metrics that support this classification include the low 0.3% price-cut share and a 66-day days on market (DOM).
The median Fair Market Rent (FMR) for ZIP 92270 in fiscal year 2024 is set at $2030, which is significantly lower than the market median home value of $843,961. This creates a substantial spread, indicating that properties in this area can command higher rents compared to the government's assessed fair market rates. However, this spread is not indicative of cash flow potential but rather points towards the stability and high value of the housing market.
A 0.3% price-cut share suggests that very few properties in Rancho Mirage are being sold below their asking price. This indicates a strong seller's market where homes are likely to appreciate in value over time due to limited supply and high demand. Additionally, a 66-day DOM is relatively short, suggesting that homes are selling quickly, another sign of a robust real estate market.
The median income of $107,364 in Rancho Mirage is quite high, which might initially suggest that this area could be less reliant on Section 8 housing. However, the 18.0% renter share shows that there is still a significant portion of the population renting, including those who may qualify for Section 8 assistance.
Conclusion: Given these factors, Rancho Mirage should be viewed as an appreciation play within a Section 8 portfolio strategy. The strong seller's market and quick sales indicate that property values are likely to increase over time, providing a solid investment opportunity for long-term growth. While the spread between the FMR and market values highlights the high-end nature of the housing stock, it does not detract from the potential for capital appreciation. For landlords and small-portfolio investors, focusing on appreciation in areas like Rancho Mirage can lead to significant gains in property equity, complementing any rental income generated through Section 8 vouchers.
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.