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 | $1,840 |
| 1 Bedroom | $1,950 |
| 2 Bedrooms | $2,410 |
| 3 Bedrooms | $3,180 |
| 4 Bedrooms | $3,820 |
| 5 Bedrooms | $4,431 |
| 6 Bedrooms | $4,963 |
| 7 Bedrooms | $5,360 |
| 8 Bedrooms | $5,628 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,950 | $320,480 | 0.61% | D |
| 2BR | $2,410 | $429,718 | 0.56% | F |
| 3BR | $3,180 | $582,453 | 0.55% | F |
| 4BR | $3,820 | $688,724 | 0.55% | F |
| 5BR | $4,431 | $774,528 | 0.57% | F |
U.S. Census Bureau data (2024)
ZIP code 92507 covers the historic University Village and Canyon Crest neighborhoods of Riverside, characterized by a blend of mid-century charm and modern student-oriented living. The area is anchored by the University of California, Riverside (UCR), which acts as a primary economic engine and a consistent source of housing demand. This district offers a dense, walkable environment with access to the UCR Botanic Gardens and local shopping plazas, making it a distinct hub within the larger Riverside-San Bernardino-Ontario metro area.
From a financial perspective, investors face a compressed spread between subsidies and the open market. The FY2024 HUD SAFMR for a two-bedroom unit sits at $2,210, while Zillow’s market rent index reports $2,267, creating a gap of just $57 where market rates exceed the voucher cap. Looking forward, the FY2026 Full FMR ladder rises to $2,520 for two bedrooms, potentially reversing that gap. Assets in this ZIP trade at a median home value of $607,649, with a median 2BR specific price of $427,999. However, liquidity is a concern, as the median days on market lingers at 81 days.
The demographic profile supports strong rental demand, with 62.9% of households renting and a median household income of $75,303. This income level suggests that while many residents can afford market rates, a significant portion likely qualifies for or requires housing assistance. Proximity to UCR ensures a steady flow of graduate students and faculty seeking stable housing, while the neighborhood’s amenities and transit options maintain long-term occupancy interest.
For Section 8 investors, the verdict leans toward stability and appreciation rather than immediate aggressive cash flow. The high renter share guarantees a deep tenant pool, and the future FY2026 FMR increase to $2,520 provides a hedge against inflation. While the current $57 negative gap between SAFMR and market rent is tight, the institutional presence of UCR offers economic resilience that protects asset value better than outlying suburbs.
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.