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 |
|---|---|---|---|---|
| 2BR | $1,990 | $455,902 | 0.44% | F |
| 3BR | $2,630 | $562,034 | 0.47% | F |
| 4BR | $3,170 | $638,208 | 0.5% | F |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 92567, centered around Nuevo, CA, reveals a positive gap between the Fair Market Rent (FMR) set at $1810 for fiscal year 2024 and the actual market rent of $1788 based on Census ACS data. This gap stands at $22, representing a 1.23% premium that landlords can potentially achieve by participating in the Section 8 program.
In this scenario where FMR exceeds the market rent, landlords have an opportunity to increase their rental yields. The FMR is the benchmark used by the U.S. Department of Housing and Urban Development (HUD) to determine payment standards for Section 8 vouchers. By accepting voucher tenants, landlords can command rents that are higher than what the local market currently supports, thereby enhancing profitability. For instance, the median home value in Nuevo, CA is $568,946, indicating a relatively stable housing market. However, only 17.4% of residents are renters, which suggests a competitive environment for landlords aiming to attract tenants.
The median income in Nuevo, CA is $107,610, providing insight into the economic conditions of the area. Despite this, the Section 8 program allows landlords to secure rental income at rates above the current market average, thus mitigating risks associated with lower-income tenants who might struggle to pay market rates. The program ensures timely payments, reducing the likelihood of vacancies and non-payment issues.
However, it's important to note that while the FMR provides a higher rate, landlords must also consider the administrative costs and compliance requirements associated with the Section 8 program. These factors can influence overall profitability and should be weighed against the potential benefits of receiving slightly higher rent payments.
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.