Section 8 Fair Market Rent (FMR) for ZIP 92399 - 2027

Investment Score for ZIP 92399

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

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

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,600	$346,836	0.46%	F
2BR	$1,990	$434,110	0.46%	F
3BR	$2,630	$548,783	0.48%	F
4BR	$3,170	$667,529	0.47%	F
5BR	$3,677	$799,513	0.46%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 92399 (Yucaipa, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 92399 in Yucaipa, CA, as of 2026, is set at $2100 for a two-bedroom unit. This figure represents 27.3% of the median household income in the area, which stands at $92,440. The FMR is designed to reflect the average rent for units that are modestly furnished and in good repair. However, it is important to note that the actual rents in the market can vary significantly from these figures. In Yucaipa, the actual rents for two-bedroom units are likely much higher than the FMR. According to Zillow, the median price for a two-bedroom home is $429,861, which translates into a monthly mortgage payment of approximately $2149 assuming a 30-year fixed-rate mortgage at 4.5%. This suggests that landlords would need to charge well above the FMR to cover their costs and make a profit. The price-to-FMR ratio for a two-bedroom unit is 17.1x, indicating that the market rents are significantly higher than the FMR. For voucher holders, this means that they will face significant constraints in finding affordable housing. Landlords who accept Section 8 vouchers may be limited to charging only up to the FMR, making it difficult for them to find tenants willing to pay such a low rate when the market is so high. #### Affordability & Renter Profile The population of Yucaipa is 55,366, with 25.9% of residents being renters. This indicates a moderate rental market, but given the occupancy rate of 95.4%, it is clear that the demand for rental properties is strong. The median household income of $92,440 suggests that many residents have the financial capability to afford market-rate rentals, but those relying on Section 8 vouchers will struggle to find suitable housing. Given the high price-to-FMR ratio, the market is tight for those seeking affordable rentals. The FMR for a three-bedroom unit is $2780, while the four-bedroom unit is priced at $3380. These figures represent a significant portion of the median household income, making it challenging for lower-income families to find affordable housing without assistance. #### Investor Angle From an investor's perspective, the ZIP code 92399 presents both opportunities and challenges. The FMR for a two-bedroom unit is $2100, but the actual market rent is much higher. If an investor were to purchase a property at the median price of $429,861 and rent it out at the FMR, the cash flow would likely be negative due to the high cost of ownership. To determine if this ZIP code is cash-flow positive at FMR, we need to consider the typical expenses associated with owning and renting out a property. Assuming a mortgage payment of $2149 per month, property taxes of around $1500 annually (which is about $125 per month), insurance of $100 per month, and maintenance costs of $100 per month, the total monthly expenses would be approximately $2474. At an FMR of $2100, the property would not generate sufficient revenue to cover these expenses, resulting in a net loss of $374 per month. This makes the investment grade for this ZIP code relatively low for Section 8-focused investors. The high market rents mean that landlords who do not accept vouchers can easily command higher rates, but those who do will face significant financial pressure. #### Specific Actionable Insights 1. **Focus on Larger Units**: Given the high FMR for larger units, investors might consider focusing on three-bedroom or four-bedroom properties. The FMR for a four-bedroom unit is $3380, which is closer to the market rate and could provide better cash flow. For example, a four-bedroom unit rented at $3380 would still generate a loss but less than a two-bedroom unit. 2. **Consider Non-Section 8 Tenants**: Investors should weigh the benefits of accepting non-Section 8 tenants who can pay market rates. A two-bedroom unit rented at the market rate of $2149 would generate a positive cash flow, even after accounting for expenses. This strategy would be more financially viable in the long term. 3. **Evaluate Property Location**: The location of the property within Yucaipa can greatly affect its rental potential. Properties located near schools, parks, and other amenities may command higher rents and thus be more attractive to non-voucher tenants. Conversely, properties in less desirable areas may have to rely more heavily on Section 8 vouchers to attract tenants. #### Bottom Line For Section 8-focused investors, the recommendation is to **Skip** this ZIP code. The high price-to-FMR ratio and the tight rental market make it challenging to achieve positive cash flow when renting at FMR levels. Instead, investors should look for areas where the FMR is closer to the market rent or where there is a greater supply of rental properties relative to demand. If investing in Yucaipa is a must, then focusing on larger units and considering non-Section 8 tenants would be more prudent strategies to ensure profitability.

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.