Section 8 Fair Market Rent (FMR) for ZIP 92307 - 2027

Investment Score for ZIP 92307

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

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

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,600	$245,296	0.65%	D
2BR	$1,990	$321,416	0.62%	D
3BR	$2,630	$427,837	0.61%	D
4BR	$3,170	$528,925	0.6%	F
5BR	$3,677	$626,575	0.59%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 92307 (Apple Valley, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 92307 in 2026 indicate that a two-bedroom unit should rent for $2080 per month. However, the Zillow median price for a two-bedroom home is $321,275, which translates to a price-to-FMR ratio of 12.9 times. This suggests that the actual rental prices in Apple Valley are significantly higher than the FMR, creating a challenging environment for Section 8 voucher holders. For instance, a three-bedroom unit has an FMR of $2780, but if the trend follows the two-bedroom ratio, it could be priced much higher on the open market. The disparity between FMR and actual rents means that voucher holders might struggle to find units that landlords are willing to accept at the FMR rate, especially given the high occupancy rate of 97.5%. #### Affordability & Renter Profile With a median household income of $77,106, the affordability of housing in Apple Valley is a significant concern. The FMR for a two-bedroom unit represents 32.4% of the median income, which is already a substantial portion. Given the high price-to-FMR ratio, it is likely that many renters are paying even more than the FMR, putting a strain on their budgets. The 29.3% renter population indicates that there is a considerable demand for rental properties, but the tight market conditions suggest that supply is limited. This makes it difficult for low-income renters to find affordable housing options, particularly those relying on Section 8 vouchers. #### Investor Angle From an investor perspective, the ZIP code 92307 presents mixed opportunities. While the occupancy rate of 97.5% suggests strong demand, the high price-to-FMR ratio indicates that the actual rental prices are well above the FMR levels. To determine if this ZIP is cash-flow positive at FMR, we need to consider the typical rental yields and expenses. Assuming a conservative annual yield of 5%, a two-bedroom property priced at $321,275 would generate approximately $16,063.75 in annual rent, or $1338.65 per month. This is below the FMR of $2080, indicating that landlords accepting Section 8 vouchers at FMR rates may face financial challenges unless they can offset these costs through other means such as government subsidies or tax benefits. The investment grade for this ZIP code is moderate due to the high occupancy rate, which suggests stability in demand. However, the challenge lies in finding units that can be rented at or near the FMR without significant vacancy periods. Investors should carefully evaluate the local market dynamics and consider the potential for negotiating higher rents with landlords who are willing to participate in the Section 8 program. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should focus on smaller units like one-bedroom or studio apartments, where the FMR is lower ($1670 and $1600 respectively). These units are more likely to be rented at or near the FMR without significant vacancy risks. 2. **Government Subsidies and Tax Benefits**: Investors should explore additional government subsidies and tax benefits available for properties participating in the Section 8 program. This can help offset the lower rental income compared to market rates and improve overall cash flow. 3. **Negotiate with Landlords**: Since the actual rental prices are significantly higher than the FMR, investors should negotiate with landlords to ensure they are willing to accept Section 8 vouchers at the FMR rate. This may involve offering incentives or highlighting the long-term stability and reduced vacancy risk associated with the Section 8 program. #### Bottom Line Given the high price-to-FMR ratio and the challenges faced by Section 8 voucher holders in finding affordable units, the recommendation for Section 8-focused investors in ZIP code 92307 is to **Hold**. While the market shows strong demand, the financial viability of renting at FMR rates is questionable without additional support mechanisms. Investors should proceed cautiously and focus on smaller units or seek out properties where they can leverage government subsidies and tax benefits to enhance profitability.

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.