Section 8 Fair Market Rent (FMR) for ZIP 92545 - 2027

Investment Score for ZIP 92545

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	$1,590
1 Bedroom	$1,690
2 Bedrooms	$2,090
3 Bedrooms	$2,750
4 Bedrooms	$3,320
5 Bedrooms	$3,851
6 Bedrooms	$4,313
7 Bedrooms	$4,658
8 Bedrooms	$4,891

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	$1,690	$194,851	0.87%	C
2BR	$2,090	$347,747	0.6%	D
3BR	$2,750	$448,412	0.61%	D
4BR	$3,320	$508,688	0.65%	D
5BR	$3,851	$547,069	0.7%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 92545 (Hemet, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 92545 in 2026 is set at $2170 for a two-bedroom unit, which represents 40.8% of the median household income in Hemet. However, the Zillow median price for a two-bedroom home in this area is significantly higher at $346,073. This translates into a price-to-FMR ratio of 13.3x, indicating that the actual market rent for properties is much higher than the FMR. For voucher holders, this means they face significant constraints in finding affordable housing within their budget. The FMR for a two-bedroom unit is only about $2170, whereas the typical market rent is likely to be closer to the median home value, making it challenging for Section 8 tenants to secure suitable accommodation without substantial out-of-pocket expenses. #### Affordability & Renter Profile With a population of 45,982 and a median household income of $63,770, Hemet has a relatively modest economic profile. Approximately 28.8% of the residents are renters, suggesting a moderate demand for rental properties. The occupancy rate of 94.2% indicates that the rental market is fairly tight, with most units being occupied. Given the high price-to-FMR ratio, it is clear that the rental market is not particularly affordable for low-income households. This suggests that the typical renter in Hemet is likely to have a higher income level or face financial strain to meet their housing needs. The high cost of living relative to income levels could lead to increased competition among renters and potentially higher vacancy rates for lower-priced units, while higher-priced units remain in demand. #### Investor Angle From an investor perspective, the ZIP code 92545 presents a mixed picture. The FMR for a two-bedroom unit is $2170, but the actual market rent is expected to be much higher due to the price-to-FMR ratio of 13.3x. This means that landlords who can secure Section 8 tenants might struggle with cash flow if they rely solely on FMR-based rents. However, the potential for higher market rents provides an opportunity for investors willing to cater to a broader range of tenants beyond just those with vouchers. The investment grade would depend on the ability to find a balance between market rents and FMR, as well as the willingness to accept Section 8 tenants. If an investor can leverage higher market rents, the ZIP code could still be considered cash-flow positive, albeit with some risk associated with the affordability gap. #### Specific Actionable Insights 1. **Target Higher-Income Renters**: Given the high price-to-FMR ratio, investors should focus on attracting higher-income renters rather than relying solely on Section 8 vouchers. This will help ensure better cash flow and reduce the risk of vacancy. 2. **Consider Mixed Housing Strategies**: Investors might benefit from a mixed approach where they offer both Section 8 units and market-rate units. This strategy can mitigate the risks associated with relying entirely on voucher tenants and allow for greater flexibility in managing rental income. 3. **Monitor Local Economic Indicators**: Keep a close eye on local economic indicators such as job growth, median income changes, and population trends. These factors can influence the demand for rental properties and the overall market dynamics. #### Bottom Line For investors focusing primarily on Section 8 vouchers, the ZIP code 92545 (Hemet, CA) is a challenging market due to the high price-to-FMR ratio. The recommendation is to **Skip** this ZIP code if the primary goal is to rely solely on Section 8 tenants. However, for investors willing to diversify their tenant base and target higher-income renters, there might be opportunities to achieve positive cash flow. In summary, unless you can balance your portfolio with a mix of market-rate and Section 8 units, the current market conditions make it difficult to recommend investing in this ZIP code based solely 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.