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 | $233,207 | 0.69% | D |
| 2BR | $1,990 | $410,433 | 0.48% | F |
| 3BR | $2,630 | $491,667 | 0.53% | F |
| 4BR | $3,170 | $544,446 | 0.58% | F |
| 5BR | $3,677 | $623,014 | 0.59% | F |
U.S. Census Bureau data (2024)
San Bernardino’s 92404 area represents a balanced mix of residential stability and accessibility, anchored by institutions like California State University, San Bernardino. This presence provides a consistent base of faculty, staff, and student renters, while the neighborhood retains a primarily suburban character with access to local retail and the nearby foothills. Recent revitalization efforts in the broader Inland Empire have also sparked increased interest in the housing stock here, making it a transition zone for investors seeking value outside of the coastal markets.
From a financial perspective, the gap between the FY2026 Fair Market Rent and current market leasing rates is striking. The 2BR FMR is set at $2,080, yet Zillow’s market index shows rent averaging only $1,734, creating a $346 premium for voucher holders. With a median home value of $480,007 and properties moving in about 45 days, the market is active but not overheated. For Section 8 landlords, this spread ensures guaranteed payments that exceed standard market returns, offering a buffer against vacancy.
Demand is supported by solid demographics, as the area boasts a 49.9% renter share and a median household income of $66,701. While local public schools receive mixed reviews, proximity to major transit corridors and the university sustains a steady pool of applicants. The income level suggests that while many residents can afford market rates, the $346 FMR surplus makes voucher units highly competitive for families seeking higher-quality rentals without stretching their budgets beyond the median.
The strongest investor angle here is cashflow via the Section 8 subsidy. The $346 difference between the $2,080 FMR and the $1,734 market rent provides an immediate yield boost that is difficult to find in conventional leasing. Given the reasonable 45-day turnover period and significant renter population, investors can rely on the government-backed premium to drive consistent, above-market net operating 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.