Section 8 Fair Market Rent (FMR) for ZIP 92591 - 2027

Investment Score for ZIP 92591

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	$1,990
1 Bedroom	$2,120
2 Bedrooms	$2,610
3 Bedrooms	$3,440
4 Bedrooms	$4,140
5 Bedrooms	$4,802
6 Bedrooms	$5,378
7 Bedrooms	$5,808
8 Bedrooms	$6,098

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	$2,610	$565,264	0.46%	F
3BR	$3,440	$666,309	0.52%	F
4BR	$4,140	$775,431	0.53%	F
5BR	$4,802	$912,735	0.53%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 92591 (Temecula, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for Temecula, CA (ZIP 92591) in 2026 is set at $2800 for a two-bedroom unit. This represents 29.4% of the median household income of $114,160. However, the actual rental market is significantly higher, with Zillow reporting a median price of $561,190 for a two-bedroom home. The price-to-FMR ratio is 16.7x, indicating that actual market rents far exceed the FMR. For voucher holders, this means they will face significant constraints in finding affordable housing within the limits of their vouchers. They would need to find units priced at or below $2800 for a two-bedroom, which is a fraction of the actual market value. #### Affordability & Renter Profile Given the high median household income of $114,160, the majority of residents in Temecula can afford the high rental costs. However, the 39.5% renter population suggests a diverse mix of individuals, including those who might rely on government assistance such as Section 8 vouchers. Despite the relatively high income levels, the occupancy rate of 95.4% indicates a tight rental market, where most available units are already occupied. This tightness makes it challenging for voucher holders to find suitable housing, as landlords may prefer higher-paying tenants who do not require government subsidies. #### Investor Angle From an investor perspective, the FMR of $2800 for a two-bedroom unit is well below the actual market value of $561,190. This implies that properties rented out at FMR levels would likely generate negative cash flow, given the high purchase price and associated costs such as property taxes, insurance, and maintenance. The investment grade for this ZIP code is low for Section 8-focused investors due to the mismatch between FMR and actual market rents. Investors seeking positive cash flow would need to consider alternative strategies, such as targeting lower-income areas or focusing on different types of properties that might be more aligned with FMR levels. #### Specific Actionable Insights 1. **Target Lower-Rent Properties**: Investors should focus on acquiring properties that are priced closer to the FMR levels. For instance, a one-bedroom unit with an FMR of $2260 might be more feasible for generating positive cash flow while still being attractive to voucher holders. This strategy would help mitigate the risk of negative cash flow and increase the likelihood of finding tenants. 2. **Consider Multi-Family Units**: Given the high occupancy rate, multi-family units could provide a better opportunity for positive cash flow. A three-bedroom unit with an FMR of $3700 might be more manageable compared to single-family homes. Additionally, multi-family units often have economies of scale that can reduce per-unit costs, making them more attractive investments. #### Bottom Line Based on the analysis, the recommendation for Section 8-focused investors in ZIP 92591 (Temecula, CA) is to **skip** this market. The high purchase prices and tight rental market make it difficult to achieve positive cash flow when renting at FMR levels. Investors should look for other ZIP codes with more favorable price-to-FMR ratios and less competitive rental markets to maximize their chances of success.

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.