Section 8 Fair Market Rent (FMR) for ZIP 90620 - 2027

Investment Score for ZIP 90620

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	$2,510
1 Bedroom	$2,540
2 Bedrooms	$2,970
3 Bedrooms	$4,030
4 Bedrooms	$4,820
5 Bedrooms	$5,591
6 Bedrooms	$6,262
7 Bedrooms	$6,763
8 Bedrooms	$7,101

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$2,970	$776,782	0.38%	F
3BR	$4,030	$914,718	0.44%	F
4BR	$4,820	$974,574	0.49%	F
5BR	$5,591	$1,110,726	0.5%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 90620 (Buena Park, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for Buena Park, CA (ZIP 90620) in 2026 is set at $3180 for a two-bedroom unit, which represents 30.3% of the median household income of $126,094. This FMR is significantly lower than the actual median rent for a two-bedroom unit reported by Zillow, which stands at $780,109. The price-to-FMR ratio of 20.4x indicates that actual rents are much higher than the FMR. For voucher holders, this means that finding affordable housing within the FMR limits can be extremely challenging, given the high actual rental prices. Additionally, the occupancy rate of 97.8% suggests that there is little room for vacancy, making it even harder for voucher holders to secure housing within their budget. #### Affordability & Renter Profile With 27.7% of the population being renters, Buena Park has a substantial rental market. However, the high median household income of $126,094 and the median Zillow rent of $780,109 for a two-bedroom unit indicate that the area is quite expensive. Given that the FMR is only $3180, this implies that the majority of renters in Buena Park likely earn above the median income or have access to other financial resources to cover the high rent costs. The tight market conditions, evidenced by the high occupancy rate, suggest that there is a strong demand for rental properties, but the supply is limited, leading to a competitive environment where rents are pushed upwards. #### Investor Angle From an investor perspective, the FMR of $3180 for a two-bedroom unit is far below the actual median rent of $780,109. This discrepancy means that properties rented out at the FMR would likely not generate sufficient cash flow to cover expenses such as mortgage payments, maintenance, property taxes, and insurance. Therefore, relying solely on FMR rates would not be financially viable for most investors. The investment grade for this ZIP code would be considered low due to the significant gap between FMR and actual rental prices, coupled with the high cost of acquiring properties in the area. #### Specific Actionable Insights 1. **Focus on Affordable Units**: Investors should seek out units that are priced closer to the FMR rather than the median Zillow rent. For instance, a two-bedroom unit priced at $3180 would be more attractive for Section 8 voucher holders, although it might not provide optimal cash flow. This could involve targeting older, less expensive properties or areas with lower rent expectations. 2. **Consider Multi-Family Properties**: Given the high actual rental prices, multi-family properties could offer a better balance between affordability and cash flow. A three-bedroom or four-bedroom unit priced at $4320 or $5160 respectively, might attract families with Section 8 vouchers while still providing a reasonable return on investment. 3. **Explore Subsidized Housing Programs**: To make properties more accessible to voucher holders, investors could look into government-subsidized housing programs that provide additional incentives or subsidies to landlords who accept Section 8 vouchers. This could help bridge the gap between FMR and actual rental prices, making the investment more feasible. #### Bottom Line Given the high actual rental prices and the significant gap between these prices and the FMR, the recommendation for Section 8-focused investors in ZIP 90620 is to **skip** this market. The tight rental market and limited availability of properties at or near the FMR make it difficult to find suitable investments that can both accommodate voucher holders and generate positive cash flow. Instead, investors should consider markets with a closer alignment between FMR and actual rental prices, or those with more affordable property acquisition costs.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.