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 | $2,220 |
| 1 Bedroom | $2,360 |
| 2 Bedrooms | $2,910 |
| 3 Bedrooms | $3,830 |
| 4 Bedrooms | $4,620 |
| 5 Bedrooms | $5,359 |
| 6 Bedrooms | $6,002 |
| 7 Bedrooms | $6,482 |
| 8 Bedrooms | $6,806 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,910 | $420,550 | 0.69% | D |
| 3BR | $3,830 | $591,428 | 0.65% | D |
| 4BR | $4,620 | $669,875 | 0.69% | D |
| 5BR | $5,359 | $750,547 | 0.71% | D |
U.S. Census Bureau data (2024)
A skeptical investor looking at ZIP 92596, Winchester, CA, might have several concerns regarding the viability of investing in properties that participate in the Section 8 program. Here are the key objections and how the data addresses them:
Will FMR $3020 (zip FY 2024) cover the mortgage on a $658,646 home?
The Fair Market Rent (FMR) for ZIP 92596 in fiscal year 2024 is set at $3020. This figure represents the maximum amount that a Section 8 tenant can pay towards their housing costs. To determine if this covers the mortgage on a home priced at $658,646, we need to calculate the monthly mortgage payment. Assuming a 30-year fixed-rate mortgage at an average interest rate of 4.5%, the monthly mortgage payment would be approximately $3275. Clearly, the FMR of $3020 does not cover the full mortgage payment. However, it's important to note that the FMR only applies to the portion covered by the Section 8 voucher; landlords can charge the full market rent, which is higher, to cover the remaining mortgage costs.
Is there enough renter demand at 16.1%?
The rental vacancy rate in ZIP 92596 is 16.1%. While this percentage might seem high, it's crucial to understand that a moderate vacancy rate is normal and indicates a healthy market. In Winchester, CA, the current vacancy rate suggests that there is still significant demand for rentals. The 16.1% figure is not unusually high compared to national averages and should not deter investors. Moreover, the Section 8 program ensures a steady stream of tenants who are committed to paying their rent through the voucher system.
Will vouchers keep pace with $3,285 market rents?
The market rent in ZIP 92596 is estimated at $3,285 per month. The Section 8 voucher amount is typically lower than the market rent, which is why the FMR is set at $3020. Landlords must consider that while they cannot charge the full market rent to Section 8 tenants, they can set their rent at the market level and accept the voucher amount plus any additional contribution from the tenant. The U.S. Department of Housing and Urban Development (HUD) periodically adjusts the FMR to reflect changes in the local rental market, so while there is no guarantee, the trend has been to adjust these amounts to stay relatively close to actual market conditions.
In conclusion, while the FMR does not cover the full mortgage payment on a $658,646 home, the combination of the voucher and tenant's contribution can make the investment feasible. The 16.1% vacancy rate indicates a reasonable level of demand, and although vouchers do not match market rents, they provide a stable income source. Investors should also consider the broader economic context and potential for long-term appreciation in property values.
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.