Location: Riverside-San Bernardino-Ontario, CA | Metro: Bakersfield-Delano, 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 |
|---|---|---|---|---|
| 1BR | $1,600 | $118,604 | 1.35% | A |
| 2BR | $1,990 | $156,922 | 1.27% | A |
| 3BR | $2,630 | $256,770 | 1.02% | B |
| 4BR | $3,170 | $337,407 | 0.94% | C |
| 5BR | $3,677 | $417,927 | 0.88% | C |
U.S. Census Bureau data (2024)
A skeptical investor looking at Ridgecrest, CA (ZIP 93555), might question whether the Fair Market Rent (FMR) of $1,580 for the fiscal year 2024 will sufficiently cover the mortgage on a home priced at $269,193. To determine this, we must consider the typical mortgage rates and terms. Assuming a 30-year fixed-rate mortgage at an average rate of 4.5%, the monthly payment on a $269,193 home would be approximately $1,340. Given that the FMR is higher than this figure, it suggests that the rent collected could indeed cover the mortgage, even with some buffer for maintenance and other expenses.
The second objection concerns the level of renter demand in the area, which stands at 37.5%. This percentage indicates that nearly 4 out of every 10 households in Ridgecrest rent their homes. While this figure is not exceptionally high, it does represent a significant portion of the housing market. Moreover, the rental vacancy rate in the area is relatively low, suggesting that demand meets supply closely. However, the data does not provide a direct comparison to historical trends or the national average, so we cannot definitively conclude whether this level of demand is sustainable or growing.
A final concern might be whether Section 8 vouchers will keep up with the market rent, which is currently at $1,376. The FMR of $1,580 for 2024 is set above the current market rent, indicating that the government aims to ensure voucher holders can afford typical rental units. This suggests that the vouchers should indeed cover the cost of renting a unit at market rates. Nonetheless, it's important to note that the actual amount paid by voucher holders can vary based on individual circumstances and the specific rules of the local housing authority.
In summary, the data points to a positive outlook for landlords and small-portfolio investors in Ridgecrest, CA. The FMR comfortably covers the expected mortgage payments, there is a notable level of renter demand, and vouchers appear to be aligned with market rents. However, without detailed historical data and specific local regulations, some uncertainties remain regarding long-term sustainability and precise voucher amounts.
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.