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 | $1,750 |
| 1 Bedroom | $1,860 |
| 2 Bedrooms | $2,290 |
| 3 Bedrooms | $3,020 |
| 4 Bedrooms | $3,630 |
| 5 Bedrooms | $4,211 |
| 6 Bedrooms | $4,716 |
| 7 Bedrooms | $5,093 |
| 8 Bedrooms | $5,348 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,860 | $227,682 | 0.82% | C |
| 2BR | $2,290 | $393,520 | 0.58% | F |
| 3BR | $3,020 | $529,758 | 0.57% | F |
| 4BR | $3,630 | $620,499 | 0.59% | F |
| 5BR | $4,211 | $753,057 | 0.56% | F |
U.S. Census Bureau data (2024)
Situated in the foothills of the San Bernardino Mountains, the 92407 zip code encompasses the Verdemont and university districts, offering a more suburban atmosphere compared to the city’s urban core. This area serves as a major educational hub, hosting California State University, San Bernardino, which acts as a central anchor for the local economy and provides a steady stream of faculty and student housing demand. The neighborhood generally features a mix of established single-family homes and hillside properties, providing quiet residential streets that appeal to long-term renters seeking stability near the campus.
From a financial perspective, the data reveals a complex picture for Section 8 investors. The FY2024 HUD SAFMR for a 2-bedroom unit is set at $2,030, while current market rents (Zillow ZORI) sit at $2,033, creating a negligible gap of $3 between voucher payments and market rates. Looking forward to FY2026, the 2BR Full FMR increases to $2,370, potentially offering better upside. With a median home value of $542,275 and a median 2BR sale price of $393,305, investors face an entry price point that, combined with the flat current rents, suggests tight cash flow margins. Additionally, properties move relatively slowly here, with a median of 51 days on market.
The tenant pool is bolstered by a solid renter share of 39.7% and a median household income of $94,032, indicating that the area is not exclusively low-income but includes working professionals and university staff. This income level supports a healthy demand for quality rentals. Proximity to the university and local amenities like the Hilton头暗示s provides a reliable renter base, though investors should screen for the distinct needs of student versus family households to minimize vacancy risk.
The strongest investor angle in 92407 is stability and long-term appreciation rather than immediate aggressive cash flow. While the current 2BR SAFMR barely matches market rents, the projected increase to $2,370 in FY2026 signals future potential. The presence of a major state university and a higher median income than the city average suggests lower tenant turnover and reduced credit risk. Investors should target properties near the university to maximize this stability, accepting that current yields may be modest until the higher FMRs take effect.
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.