Section 8 Fair Market Rent (FMR) for ZIP 92506 - 2027

Investment Score for ZIP 92506

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	$1,690
1 Bedroom	$1,790
2 Bedrooms	$2,210
3 Bedrooms	$2,910
4 Bedrooms	$3,510
5 Bedrooms	$4,072
6 Bedrooms	$4,561
7 Bedrooms	$4,926
8 Bedrooms	$5,172

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	$2,210	$537,543	0.41%	F
3BR	$2,910	$645,589	0.45%	F
4BR	$3,510	$802,824	0.44%	F
5BR	$4,072	$1,053,451	0.39%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 92506 (Riverside, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 92506 is set by HUD for the year 2026. The FMRs for different unit sizes are as follows: - 0BR: $1770 - 1BR: $1860 - 2BR: $2300 (which is 22.7% of the median household income) - 3BR: $3040 - 4BR: $3670 These figures represent the maximum rent that a Section 8 voucher holder can pay for a given unit size. However, the actual rents in the area are significantly higher. For instance, the Zillow median price for a 2BR unit is $534,952, which translates into a monthly rental cost that is approximately 19.4 times the FMR for a 2BR unit. This suggests that the actual rental market is far above the FMR levels, making it challenging for voucher holders to find suitable housing within their budget constraints. #### Affordability & Renter Profile ZIP code 92506 has a population of 45,086, with 22.6% of residents being renters. The occupancy rate is quite high at 96.3%, indicating a tight rental market where most available units are occupied. Given the median household income of $121,459, the majority of residents are likely able to afford higher rents. However, for those relying on Section 8 vouchers, the situation is dire. The FMR for a 2BR unit is only $2300, while the actual median rent is much higher. This means that voucher holders would need to find units priced below the FMR, which is unlikely given the high occupancy rates and the overall rental market dynamics. #### Investor Angle From an investor’s perspective, the ZIP code 92506 presents a challenging scenario when focusing on Section 8 vouchers. The FMRs are substantially lower than the actual market rents, which makes it difficult to achieve positive cash flow if relying solely on these vouchers. For example, a 2BR unit with a Zillow median price of $534,952 would have a monthly rental cost around $4458, based on a typical mortgage payment calculation (assuming a 30-year fixed-rate mortgage at 4.5%). This is nearly double the FMR of $2300 for a 2BR unit. Therefore, investors seeking to rely on Section 8 vouchers for cash flow would likely struggle to break even, let alone make a profit. The investment grade in this ZIP code is low due to the mismatch between FMRs and actual market rents. Investors might consider other strategies such as targeting lower-income areas where FMRs align more closely with actual rents or focusing on owner-occupied homes rather than rentals. #### Specific Actionable Insights 1. **Target Lower-Income Units**: Investors should focus on acquiring properties that are priced closer to the FMR levels. For instance, a 2BR unit priced at $2300 per month could be a better fit for Section 8 voucher holders. This strategy would help ensure that the property remains occupied and the cash flow is more manageable. 2. **Consider Alternative Rental Programs**: Since the actual market rents are so high compared to FMRs, investors might want to explore alternative rental assistance programs that offer higher subsidies. Additionally, they could look into mixed-income developments where some units are rented at market rates and others are rented to voucher holders. 3. **Evaluate Owner-Occupied Opportunities**: Given the high occupancy rate and the mismatch between FMRs and market rents, investing in owner-occupied homes might be a more viable option. These properties can be sold at market rates, providing a better return on investment compared to renting at FMR levels. #### Bottom Line For investors focused on Section 8 vouchers, the recommendation for ZIP code 92506 is to **skip** this market. The significant gap between FMRs and actual market rents makes it nearly impossible to achieve positive cash flow. Instead, investors should consider other ZIP codes with more favorable FMR-to-market rent ratios or explore alternative investment strategies that do not rely heavily on 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.