Location: Riverside-San Bernardino-Ontario, CA | Metro: Riverside-San Bernardino-Ontario, CA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $2,350 |
| 1 Bedroom | $2,500 |
| 2 Bedrooms | $3,080 |
| 3 Bedrooms | $4,060 |
| 4 Bedrooms | $4,890 |
| 5 Bedrooms | $5,672 |
| 6 Bedrooms | $6,353 |
| 7 Bedrooms | $6,861 |
| 8 Bedrooms | $7,204 |
U.S. Census Bureau data (2024)
When considering whether to purchase a property in ZIP code 92532 for Section 8 investment, follow these steps:
1. Does FMR ($2,670) clear debt service on a $630,241 property?
No. The Fair Market Rent (FMR) for ZIP 92532 in fiscal year 2024 is set at $2,670. To determine if this clears debt service, calculate the monthly mortgage payment on a $630,241 property. Assuming a 30-year fixed-rate mortgage at an average interest rate of 4%, the monthly payment would be approximately $3,000. This exceeds the FMR, indicating that the rental income alone will not cover the mortgage payments.
2. Is market rent ($2,933 ZORI) above, at, or below FMR?
Above. The market rent, as indicated by the Zillow Observed Rental Index (ZORI), is $2,933 per month. This is higher than the FMR of $2,670, suggesting that properties can command higher rents outside of Section 8.
3. Are 25.3% renters + 31-day DOM enough demand?
It depends. With 25.3% of residents being renters and the days on market (DOM) at 31 days, there is moderate demand. However, the primary consideration is whether you plan to exclusively serve Section 8 tenants or open your property to the broader rental market. If the goal is strictly Section 8, the FMR not covering the debt service makes it a risky investment. If you aim to leverage the higher market rent, then the demand appears sufficient, though you must factor in the potential for lower occupancy rates among Section 8 tenants.
In summary, purchasing a property in ZIP 92532 for Section 8 purposes is not advisable based solely on the FMR. However, if you are willing to cater to a mix of market-rate and Section 8 tenants, the higher market rent and moderate demand suggest a feasible investment. Always conduct a thorough financial analysis, including potential subsidies and vacancy rates, before making a final decision.
Data Sources: FMR data from HUD (2027). 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.