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 | $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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,600 | $329,996 | 0.48% | F |
| 2BR | $1,990 | $413,559 | 0.48% | F |
| 3BR | $2,630 | $639,239 | 0.41% | F |
| 4BR | $3,170 | $878,020 | 0.36% | F |
U.S. Census Bureau data (2024)
The Section 8 thesis for real estate investment in ZIP code 92561, centered around Mountain Center, CA, highlights a critical gap between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR in ZIP 92561 is set at $1630, while the Census ACS reports an average market rent of $1656. This indicates a gap of $26, or approximately 1.6%, where the market rent exceeds the FMR.
This scenario presents a challenge for landlords and small-portfolio investors. When the market rent is higher than the FMR, it means that voucher tenants will only cover up to $1630 of the monthly rent. The difference must be absorbed by the landlord, making it less attractive to accept Section 8 vouchers. However, this situation can still be profitable if the landlord leverages economies of scale or has a low cost basis. It's important to note that the median home value in Mountain Center is $577,521, which is significantly higher than the median income of $94,063, suggesting a high-end real estate market. Only 14.8% of residents are renters, indicating a smaller pool of potential voucher tenants relative to homeowners.
To mitigate the risk of accepting Section 8 vouchers, landlords should consider the overall financial landscape of Mountain Center. Despite the gap, the stability of rental income from voucher holders can be a compelling factor, especially when compared to the volatility of open-market rents. Additionally, the long-term nature of Section 8 tenancy can provide a steady cash flow, which is beneficial for portfolio diversification and risk management.
In conclusion, while the gap between FMR and market rent in ZIP 92561 does present a financial burden for landlords who accept Section 8 vouchers, the benefits of stable and long-term tenancy can outweigh the costs. Landlords must carefully evaluate their cost structures and the local real estate market dynamics to determine whether accepting vouchers is a viable strategy.
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.