Section 8 Fair Market Rent (FMR) for ZIP 92571 - 2027

Investment Score for ZIP 92571

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	$1,800
1 Bedroom	$1,910
2 Bedrooms	$2,360
3 Bedrooms	$3,110
4 Bedrooms	$3,740
5 Bedrooms	$4,338
6 Bedrooms	$4,859
7 Bedrooms	$5,248
8 Bedrooms	$5,510

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	$2,360	$427,695	0.55%	F
3BR	$3,110	$501,624	0.62%	D
4BR	$3,740	$556,667	0.67%	D
5BR	$4,338	$624,110	0.7%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 92571 (Perris, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 92571 is set by HUD for the year 2026. The FMRs are as follows: - 0BR: $1890 - 1BR: $1990 - 2BR: $2460 (which represents 32.0% of the median household income) - 3BR: $3250 - 4BR: $3930 These figures represent the maximum amount that a Section 8 voucher holder can pay towards rent. However, the actual rental market in Perris, CA, may differ significantly. According to Zillow, the median price for a 2BR home in this ZIP code is $422,525. This implies that the price-to-FMR ratio for a 2BR unit is approximately 14.3x. Given these high ratios, it is clear that the actual rents in the area far exceed the FMRs. For instance, a 2BR unit priced at $422,525 would likely have a monthly rent much higher than the $2460 FMR. Therefore, Section 8 voucher holders face significant constraints in finding affordable housing units that fit within their budget. They might be limited to older, less desirable properties or those located in less sought-after areas. #### Affordability & Renter Profile The median household income in Perris, CA, is $92,309. With 28.1% of households being renters, the rental market is moderately sized but not overwhelmingly dominant. Given that the FMR for a 2BR unit is only 32.0% of the median income, renters should theoretically find it relatively easy to afford housing. However, the reality is different due to the high price-to-FMR ratio. The occupancy rate of 96.5% suggests that the rental market is quite tight, with few vacant units available. This tightness could contribute to higher rents, making it even more challenging for Section 8 voucher holders to find suitable housing. Additionally, the high median home price indicates that the area is attractive to buyers, which could further drive up rental prices. #### Investor Angle From an investor’s perspective, the ZIP code 92571 presents both opportunities and challenges. The high price-to-FMR ratio means that properties rented out at FMR levels will likely generate negative cash flow. For example, a 2BR unit priced at $422,525 would have a monthly mortgage payment well above the $2460 FMR, assuming typical financing terms. To determine if this ZIP code is cash-flow positive at FMR, we need to consider the average mortgage payment. If we assume a 30-year fixed-rate mortgage at a 4.5% interest rate, the monthly payment on a $422,525 property would be around $2,075 (excluding property taxes, insurance, and maintenance). Even when considering additional costs, the total expenses would still be lower than the $2460 FMR for a 2BR unit. However, for larger units like 3BR and 4BR, where the FMR is $3250 and $3930 respectively, the gap between the mortgage payment and FMR becomes more pronounced, leading to potential negative cash flow scenarios. In terms of investment grade, ZIP code 92571 appears to be a moderate risk. While there is demand for rental properties, the high price-to-FMR ratio suggests that investors may struggle to achieve positive cash flow without significant subsidies or other forms of assistance. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Investors should focus on acquiring smaller units such as 0BR and 1BR apartments, which are more likely to be rented out at or below FMR. For instance, a 1BR unit with an FMR of $1990 would be more manageable financially compared to a 4BR unit with an FMR of $3930. 2. **Consider Subsidies**: To make larger units more feasible for Section 8 voucher holders, investors might want to explore government subsidies or partnerships with local housing authorities. This could help bridge the gap between the actual rent and the FMR, making properties more attractive to voucher holders. #### Bottom Line For Section 8-focused investors, ZIP code 92571 presents a challenging environment due to the high price-to-FMR ratio. The recommendation is to **Skip** this ZIP code unless you can secure significant subsidies or are willing to accept negative cash flow. The tight rental market and high home prices make it difficult to find properties that are both affordable and profitable for Section 8 tenants. Instead, investors might want to look for areas with lower price-to-FMR ratios or consider smaller units that are more likely to align with FMR guidelines.

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.