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 |
|---|---|---|---|---|
| 3BR | $2,630 | $199,824 | 1.32% | A |
U.S. Census Bureau data (2024)
The analysis of the Section 8 real estate market in ZIP code 92398 reveals a significant gap between the HUD Fair Market Rent (FMR) and the actual market rent. The FMR for 92398 in fiscal year 2024 is set at $1,580, while the average market rent, according to recent data sources, is $1,000. This means that the FMR is $580 higher than the market rent, representing a 58% premium.
The disparity between the FMR and the market rent makes properties in 92398 attractive for landlords and small-portfolio investors who can leverage the higher FMR payments to achieve better yields. With 53.2% of residents being renters and a median home value of $167,455, the rental market is robust, but the median income of $59,888 suggests that many tenants will require assistance through housing vouchers.
Investing in properties that accept Section 8 vouchers ensures a steady stream of income, as tenants are subsidized by the government up to the FMR. However, it's important to note that the actual market rent is lower than the FMR, which means that landlords might be renting units below the open-market rate. Despite this, the financial stability offered by the government-backed rental assistance program can offset any perceived loss in rental income.
To summarize, the gap between the FMR and the market rent in ZIP code 92398 presents a unique opportunity for landlords and investors to secure a higher yield compared to renting at the open-market rate. Given the economic context of the area, accepting housing voucher tenants can be a strategic move to ensure consistent occupancy and income.
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.