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 | $2,320 |
| 1 Bedroom | $2,460 |
| 2 Bedrooms | $3,040 |
| 3 Bedrooms | $4,010 |
| 4 Bedrooms | $4,820 |
| 5 Bedrooms | $5,591 |
| 6 Bedrooms | $6,262 |
| 7 Bedrooms | $6,763 |
| 8 Bedrooms | $7,101 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $3,040 | $440,847 | 0.69% | D |
| 3BR | $4,010 | $681,537 | 0.59% | F |
| 4BR | $4,820 | $771,539 | 0.62% | D |
| 5BR | $5,591 | $860,156 | 0.65% | D |
U.S. Census Bureau data (2024)
The classification of ZIP 92508 in Riverside, CA, hinges on the balance between yield and stability. The Fair Market Rent (FMR) for the area stands at $3,020 for fiscal year 2024, significantly higher than the market rent of $2,624. This discrepancy suggests a potential for higher rental yields if properties can be leased at or near the FMR rates.
On the stability front, the ZIP code shows a moderate level of renter occupancy at 20.6%, which is not particularly high but indicates a reasonable demand for rental properties. The days on market (DOM) average of 28 days signals a relatively quick turnover rate, which is positive for maintaining steady cash flow. However, the median household income of $147,674 is notably high, suggesting that many residents might have the financial means to purchase rather than rent homes.
The median home value in the area is $767,523, indicating a high-cost housing market. Given the high income levels and the significant gap between FMR and market rent, it is likely that ZIP 92508 leans towards a high-yield/low-stability market. Landlords and small-portfolio investors should expect strong rental income potential, but also be prepared for fluctuating occupancy rates due to the strong purchasing power of local residents.
To summarize, the key figures driving this assessment are:
This analysis points to an environment where rental yields could be substantial, but investors must manage expectations regarding long-term stability and tenant retention. High-income households often prefer homeownership over renting, which can lead to periods of lower demand for rental properties.
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.