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 |
|---|---|---|---|---|
| 2BR | $1,990 | $494,789 | 0.4% | F |
| 3BR | $2,630 | $560,160 | 0.47% | F |
| 4BR | $3,170 | $622,034 | 0.51% | F |
| 5BR | $3,677 | $703,245 | 0.52% | F |
U.S. Census Bureau data (2024)
Riverside, CA's ZIP code 92501 is a densely populated neighborhood with over 22,934 residents. A significant portion, 56.7%, are renters, indicating a strong demand for rental properties in the area. The median income here is robust at $81,886, which suggests that the local economy supports a comfortable standard of living. However, the median home value stands at a high $562,718, reflecting the competitive nature of the housing market.
The economic landscape of 92501 is particularly interesting when considering the rent dynamics. According to the Fair Market Rent (FMR) for ZIP code 92501 in fiscal year 2024, the estimated rent for a moderate-sized apartment is $1,830. This figure contrasts sharply with the actual market rent, as indicated by Zillow's Observed Rent Index (ZORI), which is set at $2,182. This discrepancy highlights a potential opportunity for landlords who can leverage the higher market rents while still qualifying for Section 8 vouchers based on the lower FMR.
Given these conditions, ZIP 92501 could be a suitable investment for both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the stable tenant base supported by Section 8 vouchers provides a predictable cash flow, mitigating the risks associated with fluctuating rental markets. Meanwhile, for those inclined towards active management, the gap between FMR and ZORI presents an avenue to increase property values through improvements and potentially command higher rents outside of the voucher program.
In summary, ZIP 92501 offers a blend of financial stability and growth potential, making it an attractive location for Section 8 investments. Landlords and small-portfolio investors should carefully consider their management style and the specific goals they wish to achieve in this dynamic neighborhood.
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.