Section 8 Fair Market Rent (FMR) for ZIP 92557 - 2027

Investment Score for ZIP 92557

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	$1,840
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

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
2BR	$2,410	$452,003	0.53%	F
3BR	$3,180	$538,722	0.59%	F
4BR	$3,820	$597,209	0.64%	D
5BR	$4,431	$657,612	0.67%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 92557 (Moreno Valley, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for Moreno Valley, CA (ZIP 92557), is set by HUD for 2026 as follows: - 0 Bedroom: $1,880 - 1 Bedroom: $1,970 - 2 Bedrooms: $2,440 - 3 Bedrooms: $3,230 - 4 Bedrooms: $3,900 Comparing these figures to actual rental prices, we see that the FMR for a 2-bedroom unit is $2,440, which is significantly lower than the Zillow median price for a 2-bedroom home, which stands at $449,756. This indicates that the FMR is not reflective of the actual market rent prices. The Price-to-FMR ratio for a 2-bedroom unit is 15.4x, meaning that the median home price is 15.4 times the FMR. This suggests that voucher holders face significant constraints in finding affordable housing within their budget. For instance, a voucher holder would struggle to find a 2-bedroom unit renting for $2,440 when the typical market rate is much higher. #### Affordability & Renter Profile Moreno Valley has a population of 54,061, with 34.9% of residents being renters. The occupancy rate is high at 96.1%, indicating a relatively tight rental market. Given the median household income of $94,804, the 2-bedroom FMR represents approximately 30.9% of the median income. This means that a significant portion of the population could be considered cost-burdened if they were to pay the FMR for a 2-bedroom unit. However, the actual market rent is likely higher, making it even more challenging for low-income families to afford housing. The high occupancy rate and the percentage of renters suggest that there is a strong demand for rental properties. Yet, the disparity between the FMR and the actual market rent implies that many potential tenants might find it difficult to secure housing through Section 8 vouchers alone. This tight market dynamic could lead to a situation where landlords have the upper hand in setting higher rents, further exacerbating affordability issues. #### Investor Angle From an investor perspective, the ZIP code 92557 presents a mixed picture. While the occupancy rate is high, indicating a robust demand for rentals, the FMRs are substantially lower than the actual market rents. For example, the FMR for a 2-bedroom unit is $2,440, whereas the Zillow median price for such a unit is $449,756. This suggests that investors who rely solely on FMRs to determine rental pricing might not achieve optimal cash flow. To evaluate the investment grade, we must consider the potential for cash flow and the overall market conditions. Given the high occupancy rate and the strong demand for rental units, investors might still find opportunities to generate positive cash flow. However, they should be aware that the FMRs are not aligned with the actual market rents, which could limit the number of eligible Section 8 voucher holders. Investors should also factor in the cost of maintaining and managing rental properties in a market where the gap between FMR and actual rent is so wide. #### Specific Actionable Insights 1. **Rent Pricing Strategy**: Investors should consider setting rents slightly below the Zillow median but above the FMR to attract both market-rate and voucher tenants. For a 2-bedroom unit, a rent of around $2,600-$2,800 might strike a balance between maximizing cash flow and remaining attractive to voucher holders. 2. **Property Management Focus**: Given the high occupancy rate, landlords should focus on property management practices that ensure timely maintenance and tenant satisfaction. This will help in retaining tenants and minimizing vacancy rates, which are crucial for maintaining positive cash flow. 3. **Targeted Marketing**: Investors should target marketing efforts towards both voucher holders and market-rate renters. By highlighting the benefits of living in Moreno Valley, such as proximity to amenities and employment centers, they can attract a broader range of tenants. #### Bottom Line For Section 8-focused investors, Moreno Valley (ZIP 92557) presents a challenging environment due to the significant disparity between FMRs and actual market rents. The high occupancy rate and strong demand for rentals indicate a potentially lucrative market, but the limited number of voucher holders who can afford the FMRs may result in fewer eligible tenants. Therefore, the recommendation for investors is to **Hold**. They should maintain existing properties and consider adjusting rent strategies to attract a mix of market-rate and voucher tenants, while also focusing on effective property management to ensure steady cash flow.

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.