Section 8 Fair Market Rent (FMR) for ZIP 92505 - 2027

Investment Score for ZIP 92505

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	$1,820
1 Bedroom	$1,920
2 Bedrooms	$2,370
3 Bedrooms	$3,140
4 Bedrooms	$3,780
5 Bedrooms	$4,385
6 Bedrooms	$4,911
7 Bedrooms	$5,304
8 Bedrooms	$5,569

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
1BR	$1,920	$283,781	0.68%	D
2BR	$2,370	$510,887	0.46%	F
3BR	$3,140	$617,652	0.51%	F
4BR	$3,780	$681,518	0.55%	F
5BR	$4,385	$816,945	0.54%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 92505 (Riverside, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 92505, as set by HUD for 2026, is $2630 for a two-bedroom unit. This represents 37.2% of the median household income of $84,906. However, the actual market rent for a two-bedroom unit is significantly higher, with Zillow reporting a median price of $503,020. The price-to-FMR ratio is 15.9x, indicating that actual market rents far exceed the FMR. For voucher holders, this means they will likely face significant constraints in finding affordable housing within their budget. Given the high market prices, landlords may be less inclined to accept vouchers due to the lower rent ceiling compared to market rates. #### Affordability & Renter Profile ZIP code 92505 has a population of 53,419, with 48.5% of residents being renters. This indicates a substantial rental market presence. With an occupancy rate of 94.9%, the market appears to be relatively tight, suggesting limited availability of rental units. The median household income of $84,906 provides some context on the economic status of residents, but the high price-to-FMR ratio implies that many renters may struggle to find housing that fits within their budget. The high market prices also suggest that the typical renter profile includes individuals who can afford to pay well above the FMR, which could make it challenging for low-income households to secure housing. #### Investor Angle From an investor perspective, the ZIP code 92505 presents a mixed scenario. While the overall market is strong, with high occupancy rates and a significant rental population, the gap between FMR and actual market rents poses challenges. At the FMR of $2630 for a two-bedroom unit, the cash flow potential is limited, especially considering the high purchase price of $503,020 reported by Zillow. This suggests that properties purchased at market value would likely have negative cash flow if rented strictly at FMR levels. Given these conditions, the investment grade for Section 8-focused investors in ZIP 92505 is relatively low. The high purchase costs and the need to maintain market rents to ensure profitability make it difficult for investors to rely solely on Section 8 vouchers for cash flow. #### Specific Actionable Insights 1. **Target Lower-Rent Properties**: Investors should focus on acquiring properties that can be rented out at or below the FMR. This might include older units or those in less desirable locations within the ZIP code. For instance, a one-bedroom unit with an FMR of $2120 might be more feasible for positive cash flow if purchased at a discount. 2. **Consider Mixed-Income Strategies**: Given the high market prices, investors could consider a mixed-income strategy where some units are rented to market-rate tenants while others are rented to voucher holders. This approach can help balance the financial impact of renting at FMR levels with the higher returns from market-rate rentals. 3. **Explore Government Programs**: Investors should explore government programs that offer additional incentives or subsidies for accepting Section 8 vouchers. These programs can help offset the financial burden of renting at FMR levels and improve the overall investment grade. #### Bottom Line For Section 8-focused investors, ZIP code 92505 is a challenging market due to the significant gap between FMR and actual market rents. The recommendation is to **skip** this ZIP code unless you can acquire properties at a substantial discount or implement a mixed-income strategy. The high purchase prices and limited cash flow potential at FMR levels make it difficult to achieve positive returns purely through Section 8 vouchers.

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.