Section 8 Fair Market Rent (FMR) for ZIP 92346 - 2027

Investment Score for ZIP 92346

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: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,990	$348,005	0.57%	F
3BR	$2,630	$523,845	0.5%	F
4BR	$3,170	$614,018	0.52%	F
5BR	$3,677	$754,536	0.49%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 92346 (Highland, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 92346 in 2026 is set at $2080 for a two-bedroom unit. This figure represents the maximum amount that a Section 8 voucher holder can pay towards rent. However, the actual rental market in Highland, CA, shows a significant disparity between FMR and the prevailing rents. For instance, the Zillow median price for a two-bedroom rental unit is $349,602, which translates to a monthly mortgage payment of approximately $1600 if financed at a typical rate. Given that the price-to-FMR ratio is 14.0x, it indicates that the actual rental rates in the area are much higher than the FMR. This means that voucher holders face considerable constraints when trying to find suitable housing. A two-bedroom unit priced at $349,602 would likely have a rental cost well above the $2080 FMR limit. Therefore, landlords who wish to participate in the Section 8 program must be willing to accept lower rents compared to the market average, which could impact their profitability. #### Affordability & Renter Profile Highland, CA has a population of 56,179, with 32.9% being renters. The median household income is $85,163, and the occupancy rate stands at 96.5%, indicating a robust demand for housing. Despite the high occupancy rate, the rental market appears to be quite tight due to the high price-to-FMR ratio. The affordability of housing for low-income families is a concern. With 29.3% of the median income allocated to a two-bedroom unit at FMR, the financial burden on these families is substantial. Given that the median household income is $85,163, a family earning this amount would need to spend about $24,900 annually on rent for a two-bedroom unit, which is nearly 30% of their total income. This suggests that the market is not particularly affordable for those relying on Section 8 vouchers. #### Investor Angle From an investor perspective, participating in the Section 8 program in ZIP code 92346 can be challenging but potentially rewarding. The FMR for a two-bedroom unit is $2080, which is significantly lower than the Zillow median price of $349,602. If we assume a conservative mortgage rate of 4.5% and a 20% down payment, the monthly mortgage payment for a two-bedroom unit would be around $1600. However, the price-to-FMR ratio of 14.0x indicates that the actual rental market is much higher than the FMR. Landlords who choose to rent to Section 8 voucher holders will have to accept a lower rent compared to the market average. This could result in negative cash flow unless they can secure additional subsidies or have other sources of income. Despite these challenges, there is still a strong demand for affordable housing in Highland, CA. The high occupancy rate suggests that there is little vacancy, making it a stable market. Additionally, the relatively high median household income of $85,163 provides some assurance that the local economy supports a steady stream of potential tenants. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should consider focusing on smaller units such as one-bedroom apartments. The FMR for a one-bedroom unit is $1670, which is closer to the actual rental costs in the area. This could provide better cash flow opportunities while still catering to the needs of Section 8 voucher holders. 2. **Seek Additional Subsidies**: Investors should explore additional subsidies available through local government programs or non-profit organizations. These subsidies can help offset the difference between the actual rental costs and the FMR, thereby improving the overall financial viability of the investment. 3. **Consider Long-Term Rental Agreements**: Given the tight rental market, long-term rental agreements can provide stability and predictability. Investors should negotiate terms that allow for periodic rent adjustments to keep pace with inflation and market conditions, while still adhering to the FMR guidelines. #### Bottom Line For Section 8-focused investors, Highland, CA (ZIP 92346) presents a mixed picture. While the demand for affordable housing is strong, the high price-to-FMR ratio makes it difficult to achieve positive cash flow without additional subsidies. Therefore, the recommendation for this ZIP code is to **Hold**. Investors should carefully evaluate their ability to manage the financial constraints associated with the Section 8 program and seek out additional support mechanisms before committing to a purchase.

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.