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 | $2,150 |
| 1 Bedroom | $2,290 |
| 2 Bedrooms | $2,820 |
| 3 Bedrooms | $3,720 |
| 4 Bedrooms | $4,470 |
| 5 Bedrooms | $5,185 |
| 6 Bedrooms | $5,807 |
| 7 Bedrooms | $6,272 |
| 8 Bedrooms | $6,586 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,820 | $534,780 | 0.53% | F |
| 3BR | $3,720 | $612,300 | 0.61% | D |
| 4BR | $4,470 | $665,924 | 0.67% | D |
| 5BR | $5,185 | $706,784 | 0.73% | D |
U.S. Census Bureau data (2024)
The Section 8 program in ZIP code 92377, which covers parts of Rialto, CA, presents a significant opportunity for landlords and small-portfolio investors due to the substantial gap between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $2390, while the Zillow Observed Rent Index (ZORI) indicates that the market rent is $3500. This means there is a $1110 difference, representing a 46.4% discount on the market rate.
In Rialto, where only 11.5% of residents are renters and the median home value stands at $644,265, the median income is $116,223. Given these economic conditions, the gap between the FMR and market rent highlights the financial implications for landlords who choose to accept housing vouchers. While the FMR is lower than the market rent, the stability and reliability of voucher payments can offset the reduced rental income. Tenants with housing vouchers are guaranteed a portion of their rent, reducing the risk of vacancy and non-payment that can be common in open-market rentals.
However, accepting Section 8 tenants also comes with costs that must be considered. These include potential restrictions on rental increases, the need to maintain properties to meet HUD standards, and the administrative burden of participating in the program. Landlords must weigh these factors against the consistent cash flow provided by voucher tenants.
Despite the initial disparity, the long-term benefits of Section 8 tenancy can be attractive. The program ensures that a steady stream of income is received, which can be particularly valuable in an area like Rialto where the majority of residents own homes and the rental market is relatively small. This makes it a strategic choice for yield-focused investments.
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.