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 | $234,078 | 0.68% | D |
| 2BR | $1,990 | $316,557 | 0.63% | D |
| 3BR | $2,630 | $396,060 | 0.66% | D |
| 4BR | $3,170 | $440,953 | 0.72% | D |
U.S. Census Bureau data (2024)
The rent math in ZIP code 92391, located in Lake Arrowhead, California, within the Riverside-San Bernardino-Ontario MSA, does not work favorably for Section 8 participants. The Fair Market Rent (FMR) set at $1580 for fiscal year 2024 is significantly below the Census-reported average market rent of $2,589. This discrepancy means that landlords participating in the Section 8 program will receive less than half of what they could potentially earn from the market.
Acquisition of properties in this area is moderately affordable. The median home value stands at $361,896, which is a substantial investment but within reach for many small-portfolio investors. However, the lack of available data on days on market (DOM) and the low percentage of homes that have been subject to price cuts (0.2%) suggest that the housing market is stable and possibly somewhat competitive, indicating that property values are holding steady.
Tenant demand in ZIP 92391 is relatively limited. With a total population of 2,254 and only 25.5% of residents being renters, the pool of potential tenants is small. This could pose challenges for landlords seeking to fill vacancies quickly, especially if the rental market is tight due to the high market rents.
In conclusion, while the acquisition cost of properties in Lake Arrowhead is reasonable, the significant gap between the Section 8 FMR and the actual market rent makes participation less attractive. Additionally, the limited tenant demand suggests that landlords might face challenges in maintaining occupancy rates. Given these factors, Section 8 participation in ZIP 92391 is not recommended for those looking to maximize their rental income or ensure consistent tenancy.
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.