Section 8 Fair Market Rent (FMR) for ZIP 92570 - 2027

Investment Score for ZIP 92570

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	$401,260	0.4%	F
2BR	$1,990	$425,918	0.47%	F
3BR	$2,630	$552,797	0.48%	F
4BR	$3,170	$644,671	0.49%	F
5BR	$3,677	$778,666	0.47%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 92570 (Perris, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 92570 in Perris, California, as set by HUD for 2026, is $2,080 for a two-bedroom unit. This figure represents 31.4% of the median household income of $79,393, indicating that it is within a reasonable range for affordability based on local incomes. However, the actual rent for a two-bedroom unit as reported by Zillow is significantly higher at $421,556, which translates to a price-to-FMR ratio of 16.9x. This means that the actual rental price is far above what the FMR suggests, creating a significant constraint for voucher holders who can only pay up to the FMR amount. Given the high actual rental prices compared to the FMR, landlords participating in the Section 8 program might face challenges in finding tenants willing to pay the difference between the FMR and the actual rent. This could lead to lower occupancy rates among Section 8 properties, especially if landlords are not willing to accept the voucher amount as the full rent. #### Affordability & Renter Profile ZIP code 92570 has a population of 58,082, with 33.5% of residents being renters. The occupancy rate is relatively high at 92.9%, suggesting that the housing market is tight and there is strong demand for rental units. Given the median household income of $79,393 and the FMR for a two-bedroom unit at $2,080, which is 31.4% of the median income, the area appears to be moderately affordable for renters. However, the actual median rental price for a two-bedroom unit ($421,556) is extremely high, making it difficult for many residents to afford housing without financial assistance. The high price-to-FMR ratio indicates that the market is not aligned with the affordability standards set by HUD. This mismatch creates a challenging environment for low-income renters who rely on Section 8 vouchers. The discrepancy between the FMR and actual rental prices also suggests that there may be a significant number of residents who are cost-burdened, paying much more than the recommended 30% of their income towards rent. #### Investor Angle From an investor’s perspective, the ZIP code 92570 presents a mixed picture. The FMR for a two-bedroom unit is $2,080, but the actual median rental price is $421,556, which is 16.9 times the FMR. This high ratio implies that the market is overpriced relative to the FMR, and investors focusing solely on Section 8 vouchers would likely struggle to achieve positive cash flow. To determine the investment grade, we need to consider the potential for rental income versus the FMR. Since the actual rental prices are so much higher than the FMR, properties rented through Section 8 would not generate sufficient revenue to cover the high costs associated with owning and maintaining the property. Therefore, the investment grade for Section 8-focused properties in this ZIP code is poor, as the cash flow would be negative unless the landlord is willing to subsidize the difference between the FMR and the actual rent. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Investors should consider focusing on smaller units such as one-bedroom apartments, where the FMR is $1,670. While still facing the challenge of high actual rental prices, smaller units may have a better chance of attracting tenants who can supplement the voucher amount with additional income. For example, a one-bedroom unit might be more affordable for single individuals or couples who do not require a larger space. 2. **Explore Non-Section 8 Rental Options**: Given the high actual rental prices, investors might find better returns by renting units to non-voucher holders who can afford the higher rent. This strategy would help mitigate the risk of negative cash flow associated with Section 8 properties. For instance, a two-bedroom unit priced at $421,556 would generate significantly more income than one rented at the FMR of $2,080. 3. **Consider Mixed-Income Developments**: Developing mixed-income housing projects that combine Section 8 units with market-rate units could provide a balanced approach. This way, the income generated from market-rate units can offset the lower income from Section 8 units, leading to overall positive cash flow. For example, a development with a mix of one-bedroom units rented at $1,670 (FMR) and three-bedroom units rented at $2,780 (FMR) could create a more sustainable financial model. #### Bottom Line Based on the provided data, the recommendation for Section 8-focused investors in ZIP code 92570 is to **skip** this market. The high actual rental prices compared to the FMR make it difficult to achieve positive cash flow, and the tight market conditions suggest that there is limited availability of affordable units. Investors looking to enter this market should carefully evaluate the financial implications and consider alternative strategies such as focusing on smaller units or developing mixed-income housing projects to ensure sustainability.

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.