Section 8 Fair Market Rent (FMR) for ZIP 92324 - 2027

Investment Score for ZIP 92324

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	$1,600
1 Bedroom	$1,700
2 Bedrooms	$2,100
3 Bedrooms	$2,770
4 Bedrooms	$3,330
5 Bedrooms	$3,863
6 Bedrooms	$4,327
7 Bedrooms	$4,673
8 Bedrooms	$4,907

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,700	$274,690	0.62%	D
2BR	$2,100	$408,544	0.51%	F
3BR	$2,770	$509,111	0.54%	F
4BR	$3,330	$572,846	0.58%	F
5BR	$3,863	$698,872	0.55%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 92324 (Colton, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 92324, as of 2026, is set at $2240 for a two-bedroom unit. This represents 37.8% of the median household income in Colton, which stands at $71,078. However, the actual rental market in Colton is significantly higher, with Zillow reporting a median price for a two-bedroom unit at $404,182. The price-to-FMR ratio is 15.0x, indicating that the actual rental prices are much higher than the FMR. Given these figures, it is clear that the FMR is substantially lower than what is typically charged in the market. For instance, if a two-bedroom unit costs $404,182, the monthly rent would be approximately $1676 based on a typical mortgage payment calculation (assuming a 30-year fixed-rate mortgage at 4%). This is still above the FMR of $2240, but significantly below the market rate. Voucher holders are constrained by the FMR, meaning they can only afford units up to the specified rent amount. In Colton, this means that voucher holders are likely to struggle to find suitable housing given the high market rates. Landlords who accept Section 8 vouchers must adhere to the FMR guidelines, which could limit their ability to charge market rates. #### Affordability & Renter Profile With a population of 57,365 and a 45.3% renter occupancy rate, Colton has a significant number of renters. The median household income of $71,078 suggests that the area is moderately priced, but the high price-to-FMR ratio indicates that the rental market is quite expensive relative to the income levels. Given that 37.8% of the median income is allocated towards a two-bedroom unit, it is evident that the rental market is tight and potentially unaffordable for many residents. This is further compounded by the fact that the median home value is also high, making homeownership less accessible. Consequently, renters in Colton are likely to include a mix of middle-income families, young professionals, and those relying on assistance programs like Section 8. The occupancy rate of 94.7% suggests that the rental market is robust and there is little vacancy, indicating a strong demand for rental properties. This tight market makes it challenging for low-income households to secure affordable housing without assistance. #### Investor Angle From an investor perspective, the ZIP code 92324 presents a mixed scenario. While the rental market is strong and there is high demand, the actual rental prices far exceed the FMR. This means that landlords who accept Section 8 vouchers will have to operate within the FMR limits, which are significantly lower than market rates. To determine if this ZIP code is cash-flow positive at FMR, we need to consider the typical expenses associated with owning a rental property. Assuming a two-bedroom unit costing $404,182 and using a conservative estimate of 1% of the purchase price for annual maintenance ($4041), plus property taxes (estimated at 1.25% of the purchase price, or $5052), and insurance (estimated at $1000 annually), the total annual expenses would be around $10,100. Dividing this by 12 gives us a monthly expense of about $842. If the landlord charges the FMR of $2240 per month, the net monthly income would be $2240 - $842 = $1398. This is positive, but it is important to note that the landlord is foregoing the potential market rate of approximately $1676 per month, which is already lower than the median market price. Therefore, while the investment is technically cash-flow positive at FMR, the returns are likely to be lower compared to charging market rates. The investment grade in this ZIP code would be considered moderate to low due to the disparity between FMR and market rates. Investors should carefully weigh the benefits of accepting Section 8 vouchers against the potential for higher returns by renting at market rates. #### Specific Actionable Insights 1. **Targeting Affordable Units**: Investors should focus on acquiring properties that are closer to the FMR to ensure they can attract voucher holders. A two-bedroom unit priced at $2240 per month would be ideal for maximizing occupancy and minimizing risk. Given the high price-to-FMR ratio, this might mean targeting older or smaller properties that are more likely to be within the FMR range. 2. **Diversifying Tenant Base**: To mitigate the risk of lower returns from FMR-restricted rents, investors should consider diversifying their tenant base. This could involve offering a mix of units, some at FMR for voucher holders and others at market rates for non-voucher tenants. For example, a three-bedroom unit at $2960 per month could be rented to a family without a voucher, while a two-bedroom unit at $2240 could be rented to a voucher holder. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 92324 is **Skip**. The high price-to-FMR ratio and the tight rental market make it challenging to find properties that are both affordable and profitable when operating under FMR restrictions. While there is a significant number of renters, the limited supply of units within the FMR range and the potential for lower returns compared to market rates suggest that this ZIP code may not be the best investment opportunity for those primarily interested in Section 8 vouchers. However, for investors willing to explore a diversified tenant strategy, there might be opportunities to achieve positive cash flow by balancing FMR-restricted units with market-rate rentals. Nonetheless, the overall recommendation remains cautious due to the high market rates and the potential difficulty in securing affordable properties.

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.