Section 8 Fair Market Rent (FMR) for ZIP 90630 - 2027

Investment Score for ZIP 90630

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	$2,620
1 Bedroom	$2,650
2 Bedrooms	$3,100
3 Bedrooms	$4,210
4 Bedrooms	$5,030
5 Bedrooms	$5,835
6 Bedrooms	$6,535
7 Bedrooms	$7,058
8 Bedrooms	$7,411

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
1BR	$2,650	$535,156	0.5%	F
2BR	$3,100	$690,686	0.45%	F
3BR	$4,210	$967,146	0.44%	F
4BR	$5,030	$1,184,227	0.42%	F
5BR	$5,835	$1,335,858	0.44%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 90630 (Cypress, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 90630 in Cypress, CA, as set by HUD for 2026, is $3170 for a two-bedroom unit. This represents 29.2% of the median household income of $130,154. However, the actual rent for a two-bedroom unit in Cypress is significantly higher, with Zillow reporting a median price of $693,442. The price-to-FMR ratio stands at 18.2x, indicating that the actual market rent far exceeds the FMR. For voucher holders, this means that they will face significant constraints in finding housing that fits within their budget. They would need to find units priced at or below $3170 per month, which is less than 1/18th of the typical market price for a similar property. #### Affordability & Renter Profile Given the high median household income of $130,154, the population in Cypress, CA, is generally well-off. However, with 31.7% of residents being renters, there is a notable segment of the population that relies on rental housing. The occupancy rate of 96.2% suggests that the rental market is quite tight, with very little vacancy. This indicates that the demand for rental properties is high, and the supply is limited, making it a challenging environment for renters who do not have access to substantial financial resources. The high price-to-FMR ratio further underscores the difficulty for low-income renters to find affordable housing, especially those relying on Section 8 vouchers. #### Investor Angle From an investor’s perspective, the ZIP code 90630 presents a mixed picture. While the median household income is high, the actual market rent is also extremely high, with a median price of $693,442 for a two-bedroom unit. The FMR of $3170 for a two-bedroom unit is only a fraction of what the market typically charges. Therefore, if an investor is looking to operate solely within the parameters of FMR, it would be difficult to achieve positive cash flow due to the high acquisition costs and the significant gap between FMR and market rent. The investment grade would likely be lower in this area for Section 8-focused investors because of the limited number of units that can be rented at FMR levels. #### Specific Actionable Insights 1. **Targeting Affordable Units**: Investors should focus on identifying units that are priced close to the FMR levels. Given the high price-to-FMR ratio, this might mean targeting older or smaller properties that are more likely to be rented at lower rates. For example, a two-bedroom unit priced at $3170 would be ideal for a Section 8 tenant but would still require careful consideration of operating costs to ensure profitability. 2. **Rent Stabilization Policies**: Given the high cost of living and the tight rental market, local rent stabilization policies could play a significant role in the future. If such policies are implemented, they could help reduce the disparity between FMR and market rents, making it easier for Section 8 tenants to find suitable housing. Investors should monitor any potential changes in local regulations that could affect rent pricing. 3. **Alternative Rental Options**: Since the market rent is so much higher than the FMR, investors might consider alternative rental options such as single-family homes or townhouses that are more likely to be rented at FMR levels. These types of properties often have lower acquisition costs compared to apartments, which could make them more feasible for Section 8 tenants. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 90630 (Cypress, CA) is to **Skip**. The high price-to-FMR ratio and the tight rental market make it challenging to find properties that can generate positive cash flow while adhering to FMR guidelines. The limited availability of units priced at or below $3170 for a two-bedroom unit means that the pool of potential Section 8 tenants is small relative to the overall rental market. Additionally, the high median household income and the significant percentage of homeowners suggest that the rental market is primarily catering to higher-income individuals, leaving little room for low-income renters. In conclusion, while Cypress, CA, offers a robust economy and high demand for rental properties, the mismatch between FMR and market rents makes it an unattractive option for investors focusing on Section 8 vouchers.

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.