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: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,990 | $282,465 | 0.7% | D |
| 3BR | $2,630 | $381,959 | 0.69% | D |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP 92321, which covers Lake Arrowhead, CA, within San Bernardino County, are defined by the Specific Area Fair Market Rent (SAFMR) for a two-bedroom unit at $1630 per month for the fiscal year 2024. This SAFMR is specifically set for this ZIP code, reflecting local rental conditions. In contrast, the local market rent for a similar unit, based on Census American Community Survey (ACS) data, is $965, indicating a significant difference between the actual market rates and the government-set rates.
A landlord participating in the Section 8 program will receive a voucher payment from the Housing Authority. The payment consists of the total amount minus the tenant's portion and any utility allowances. For a two-bedroom unit, the tenant is typically responsible for paying 30% of their adjusted income towards rent. Utility allowances vary but are generally around $200-$300 per month, depending on the household size and the local climate.
To illustrate, if a tenant's adjusted monthly income is $1500, they would pay $450 towards rent (30% of $1500). If the utility allowance is $250, then the Housing Authority would cover the remaining $1180 of the $1630 SAFMR. Thus, the landlord receives a total of $1630 ($450 from the tenant + $1180 from the Housing Authority).
This means that even though the local market rent is $965, landlords can potentially receive more than the market rate when renting to tenants with Section 8 vouchers. The reimbursement gap or surplus for a two-bedroom unit in ZIP 92321 is a surplus of $665 per month ($1630 - $965), making it an attractive option for landlords looking to maximize their rental income while serving low-income families.
However, landlords should be aware of the administrative requirements and potential delays in receiving payments. Despite these challenges, the economic benefits of participating in the Section 8 program in ZIP 92321 are clear, offering a stable and often higher-than-market rental income.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.