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 | $1,960 |
| 1 Bedroom | $2,080 |
| 2 Bedrooms | $2,570 |
| 3 Bedrooms | $3,390 |
| 4 Bedrooms | $4,080 |
| 5 Bedrooms | $4,733 |
| 6 Bedrooms | $5,301 |
| 7 Bedrooms | $5,725 |
| 8 Bedrooms | $6,011 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,080 | $276,743 | 0.75% | D |
| 2BR | $2,570 | $383,825 | 0.67% | D |
| 3BR | $3,390 | $571,268 | 0.59% | F |
| 4BR | $4,080 | $757,507 | 0.54% | F |
| 5BR | $4,733 | $1,180,246 | 0.4% | F |
U.S. Census Bureau data (2024)
The classification of ZIP 92352 (Lake Arrowhead, CA) as a real estate market for Section 8 landlords and small-portfolio investors can be determined by analyzing its yield and stability metrics. The Fair Market Rent (FMR) for ZIP 92352 in fiscal year 2024 is set at $2,070. This figure represents the maximum rent that a landlord can charge for a Section 8 voucher tenant. Comparatively, the market rent is higher at $2,306, indicating that there is a slight premium for non-subsidized rentals.
The median home value in Lake Arrowhead is $605,946, which is significantly higher than both the FMR and market rent figures. This suggests that the area is primarily residential, with a focus on homeownership rather than renting. The percentage of renters in the area is only 11.7%, further supporting this conclusion. A low percentage of renters can indicate less demand for rental properties, which could affect the occupancy rates and cash flow stability for landlords.
Stability is assessed through the days on market (DOM) and median household income. The average DOM for rental listings in Lake Arrowhead is 102 days, which is relatively high. This implies that finding tenants might take longer, potentially leading to periods of vacancy and reduced cash flow. Additionally, the median household income in the area is $105,753, which is quite substantial. However, this does not necessarily translate into greater stability for Section 8 rentals, as it reflects the overall economic health of the area rather than the income level of potential voucher holders.
Based on these figures, ZIP 92352 (Lake Arrowhead, CA) falls into a category that is neither a high-yield/low-stability flip-style market nor a steady-cashflow zone. The yield is moderate, with the FMR being lower than the market rent but still providing decent returns. Stability is compromised by the high DOM and low percentage of renters, suggesting that securing consistent cash flow might be challenging. Therefore, this market is best classified as a middle-ground option, offering reasonable yields but requiring careful management to ensure stable occupancy.
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.