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 | $293,304 | 0.55% | F |
| 2BR | $1,990 | $418,412 | 0.48% | F |
| 3BR | $2,630 | $484,506 | 0.54% | F |
| 4BR | $3,170 | $537,725 | 0.59% | F |
| 5BR | $3,677 | $594,240 | 0.62% | D |
U.S. Census Bureau data (2024)
ZIP 92405, located in San Bernardino, CA, within the Riverside-San Bernardino-Ontario, CA MSA, serves as an ideal cash-flow anchor for a Section 8 portfolio strategy. The Federal Market Rent (FMR) for the area in fiscal year 2024 is set at $1620, significantly below the market rent of $2032. This $412 difference represents a substantial cushion that ensures steady cash flow even if market conditions fluctuate.
The median home value in ZIP 92405 stands at $451,295. While this figure is important, the focus here is on rental properties. The FMR provides a guaranteed minimum rent through the Section 8 program, which is crucial for maintaining consistent cash flow. Landlords can leverage this spread to cover mortgage payments, property taxes, insurance, and maintenance costs, ensuring profitability without relying solely on market rents.
Furthermore, the 0.2% price-cut share indicates that very few listings require significant discounts to attract tenants, suggesting a stable demand for rental properties in the area. The N/A-day Days on Market (DOM) implies that most properties are rented quickly, reducing vacancy rates and associated costs.
The 49.0% renter share highlights a balanced mix of homeowners and renters, making ZIP 92405 less susceptible to market volatility compared to areas dominated by either homeowners or renters. With a median income of $66,964, there is a sufficient number of potential tenants who qualify for the Section 8 program, ensuring a steady stream of eligible applicants.
In summary, ZIP 92405 should be considered a cash-flow anchor due to the significant gap between FMR and market rent, quick rental times, and a stable tenant pool. This makes it a reliable component of any Section 8 portfolio strategy, providing predictable returns and minimizing risk.
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.