Section 8 Fair Market Rent (FMR) for ZIP 92544 - 2027

Investment Score for ZIP 92544

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	$1,530
1 Bedroom	$1,600
2 Bedrooms	$1,990
3 Bedrooms	$2,630
4 Bedrooms	$3,170
5 Bedrooms	$3,677
6 Bedrooms	$4,118
7 Bedrooms	$4,447
8 Bedrooms	$4,669

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	$1,600	$252,244	0.63%	D
2BR	$1,990	$363,316	0.55%	F
3BR	$2,630	$459,466	0.57%	F
4BR	$3,170	$515,400	0.62%	D
5BR	$3,677	$578,974	0.64%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 92544 (Hemet, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 92544 in 2026 indicate that the rent for a two-bedroom unit is set at $2,080. However, the Zillow median price for a two-bedroom home in this area is $357,637, which translates to a price-to-FMR ratio of 14.3x. This means that the median price of a two-bedroom home is significantly higher than the FMR, suggesting that actual rental rates could be much higher than the FMR. For voucher holders, the constraint is that landlords must accept the voucher amount, which is capped at the FMR. In Hemet, this could mean that voucher holders might struggle to find units that are priced at or below the FMR, particularly for larger units. The 2BR FMR represents only 33.9% of the median household income, indicating that even without a voucher, many residents would find it challenging to afford market-rate rents. #### Affordability & Renter Profile With a population of 51,751, Hemet has a significant number of renters, accounting for 31.2% of the total housing units. The occupancy rate of 91.4% suggests that there is a relatively high demand for housing in the area. Given that the median household income is $73,596, it is clear that the cost of living, especially for those renting, can be quite high relative to their earnings. The affordability issue is compounded by the fact that the FMR for a three-bedroom unit is $2,780, which is still a substantial portion of the median household income. This indicates that the market is tight, with limited options for families who need larger units but cannot afford market rates. Consequently, many renters may rely on assistance programs like Section 8 to make ends meet. #### Investor Angle From an investor’s perspective, the ZIP code 92544 offers mixed potential. The FMRs provide a baseline for rental pricing, but the actual market rates are likely to be higher due to the high price-to-FMR ratio. For instance, a two-bedroom unit priced at the FMR of $2,080 would represent a significant discount compared to the median home value of $357,637. However, the investment grade depends on whether the FMRs allow for positive cash flow. Assuming a conservative vacancy rate and maintenance costs, the FMRs may not cover all expenses for a typical two-bedroom unit. For example, if a two-bedroom unit costs $357,637 to purchase, the monthly mortgage payment alone could exceed $2,080, making it difficult to achieve positive cash flow solely based on FMRs. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Investors should consider focusing on one-bedroom or studio units, where the FMRs ($1,670 and $1,600 respectively) are closer to the median household income. This could increase the likelihood of finding tenants willing to pay the full FMR, thereby improving cash flow prospects. 2. **Target Affordable Housing Projects**: Given the high price-to-FMR ratio, projects that aim to build or renovate affordable housing units could be more attractive. These projects might qualify for additional subsidies or tax incentives, helping to bridge the gap between the FMR and the actual cost of ownership. 3. **Consider Location-Specific Factors**: While the overall market appears tight, certain neighborhoods within Hemet might have lower rental rates due to differences in desirability or proximity to amenities. Conducting a thorough neighborhood analysis could reveal pockets where FMRs are more closely aligned with actual rents, providing better opportunities for positive cash flow. #### Bottom Line For Section 8-focused investors, the recommendation is to **Hold**. The high price-to-FMR ratio and the tight market conditions suggest that achieving positive cash flow purely through FMRs will be challenging. However, smaller units and strategic location choices could offer some relief. Investors should also explore opportunities for affordable housing projects that might receive additional support. Overall, while Hemet presents some challenges, it remains a viable market with potential for those willing to navigate its complexities carefully. --- This analysis provides a concise overview of the rental market dynamics in ZIP code 92544, focusing on how Section 8 vouchers interact with actual rents, the profile of renters, and the feasibility of investing in the area. It highlights the key points using the provided data and offers actionable insights for investors.

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.