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 |
|---|---|---|---|---|
| 1BR | $1,600 | $273,547 | 0.58% | F |
| 2BR | $1,990 | $350,879 | 0.57% | F |
| 3BR | $2,630 | $444,504 | 0.59% | F |
| 4BR | $3,170 | $540,867 | 0.59% | F |
| 5BR | $3,677 | $623,226 | 0.59% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 92371, Phelan, CA, reveals a competitive yet favorable environment for rental properties. The HUD Fair Market Rent (FMR) for the area is set at $1780 for fiscal year 2024, which is higher than the reported market rent of $1,515 based on Census ACS data.
Voucher tenants in this region will generally cashflow at the HUD FMR rate. This means that landlords can expect to cover their expenses and generate a profit when renting units at the FMR without needing to rely on premium pricing. However, it's important to note that the actual cashflow will depend on the specific costs associated with maintaining and managing the property.
The median home value in ZIP 92371 is $465,012. Using this figure, we can calculate a rent-to-price ratio. With an annual rent of $18,360 (assuming a constant monthly rent of $1,530), the rent-to-price ratio is approximately 3.95%. This ratio suggests that rental income is a modest portion of the total property value, indicating a balance between rental yields and potential capital appreciation.
The data does not provide a median Days on Market (DOM) or a percentage of homes that have undergone price cuts, both of which are typically N/A for areas with low turnover rates or stable housing markets. Given the lack of significant price-cutting activity and the relatively stable days on market, the buy-versus-rent dynamic appears to be stable in Phelan, CA. This stability supports the idea that the local real estate market is unlikely to experience rapid fluctuations, providing a predictable environment for investors.
The strongest investor angle in ZIP 92371 is likely cashflow. With voucher tenants paying at or above the market rent, landlords can secure steady, reliable income from their investments. While appreciation is possible, the primary benefit for Section 8 investors will be the consistent cashflow generated by renting at the HUD FMR rate.
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.