Section 8 Fair Market Rent (FMR) for ZIP 92504 - 2027

Investment Score for ZIP 92504

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	$1,600
1 Bedroom	$1,700
2 Bedrooms	$2,100
3 Bedrooms	$2,770
4 Bedrooms	$3,330
5 Bedrooms	$3,863
6 Bedrooms	$4,327
7 Bedrooms	$4,673
8 Bedrooms	$4,907

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
2BR	$2,100	$523,375	0.4%	F
3BR	$2,770	$585,764	0.47%	F
4BR	$3,330	$699,421	0.48%	F
5BR	$3,863	$1,140,346	0.34%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 92504 (Riverside, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 92504 in 2026 is set at $2,230 for a two-bedroom unit, which represents 28.9% of the median household income of $92,477. This means that a significant portion of the population could potentially qualify for Section 8 vouchers. However, the actual rental market in this area is considerably higher. The Zillow median price for a two-bedroom unit is $519,149, which translates to a monthly rent of approximately $2,163 if we assume a typical mortgage payment based on a 4.5% interest rate over 30 years. This is very close to the FMR but still slightly above it, indicating that voucher holders might face some difficulty finding affordable housing. Given the high price-to-FMR ratio of 19.4x, it is clear that the actual property values far exceed the FMR, creating a significant gap between what voucher holders can afford and the market rates. This suggests that landlords who accept Section 8 vouchers may be constrained by the lower rent they can charge compared to market rates. #### Affordability & Renter Profile ZIP code 92504 has a population of 57,132, with 35.6% of residents being renters. The occupancy rate is quite high at 94.9%, indicating a tight rental market where demand is strong relative to supply. Given the median household income of $92,477, the median rent for a two-bedroom unit at $2,230 is relatively affordable for many households, but not all. The 28.9% of median income required for a two-bedroom unit is a substantial portion of the average renter’s budget, suggesting that affordability is a concern for many residents. The high occupancy rate and the significant percentage of renters indicate that there is a robust demand for rental properties in this area. However, the tight market conditions mean that competition for units is fierce, and those who rely solely on Section 8 vouchers may struggle to find suitable housing due to the limited number of properties that fall within their budget. #### Investor Angle From an investor perspective, the ZIP code 92504 presents a mixed picture. While the median household income is relatively high at $92,477, the actual rental prices are also high, with the Zillow median for a two-bedroom unit being $519,149. If we consider the FMR of $2,230 for a two-bedroom unit, the cash flow potential for investors accepting Section 8 vouchers is limited. In fact, the price-to-FMR ratio of 19.4x indicates that the actual property value is nearly 20 times the FMR, making it challenging for investors to achieve positive cash flow when relying solely on FMR-based rents. Moreover, the investment grade for this ZIP code would likely be considered low due to the high property values and the limited ability to charge market rates when accepting Section 8 vouchers. Investors looking to maximize returns would need to carefully evaluate whether the potential rental income aligns with their financial goals, especially considering the high cost of acquiring properties in this area. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should consider focusing on smaller units such as one-bedroom or studio apartments. The FMR for a one-bedroom unit is $1,800, which is significantly lower than the Zillow median price. This could provide a better opportunity for positive cash flow while still serving the needs of Section 8 voucher holders. 2. **Consider Multi-Family Properties**: Multi-family properties often offer economies of scale and can help offset the lower rental income per unit. For example, a four-unit apartment building with two-bedroom units could generate a total monthly rental income of $8,920 (4 units x $2,230). This could be more financially viable than single-family homes, even if individual rents are lower than market rates. 3. **Look for Undervalued Properties**: Investors should look for undervalued properties that are below the Zillow median price. A property priced at $400,000, for instance, would have a monthly mortgage payment of around $1,800 (assuming a 4.5% interest rate over 30 years), which aligns closely with the FMR for a two-bedroom unit. This could create opportunities for positive cash flow and make the investment more attractive. #### Bottom Line For investors focused on Section 8 vouchers, the ZIP code 92504 presents a challenging environment due to the high property values and tight rental market. The recommendation would be to **skip** this ZIP code unless you can find undervalued properties or focus on smaller units where the FMR is closer to the market rate. The high price-to-FMR ratio makes it difficult to achieve positive cash flow, and the limited number of properties within the FMR range means that competition for tenants is intense. Therefore, unless you can identify specific opportunities that align with the FMR, this ZIP code is not ideal for Section 8-focused investments.

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.