Location: Santa Ana-Anaheim-Irvine, CA | Metro: Los Angeles-Long Beach-Glendale, CA HUD Metro FMR Area
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 | $2,230 |
| 1 Bedroom | $2,280 |
| 2 Bedrooms | $2,690 |
| 3 Bedrooms | $3,620 |
| 4 Bedrooms | $4,300 |
| 5 Bedrooms | $4,988 |
| 6 Bedrooms | $5,587 |
| 7 Bedrooms | $6,034 |
| 8 Bedrooms | $6,336 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,280 | $402,626 | 0.57% | F |
| 2BR | $2,690 | $636,458 | 0.42% | F |
| 3BR | $3,620 | $912,520 | 0.4% | F |
| 4BR | $4,300 | $1,147,651 | 0.37% | F |
| 5BR | $4,988 | $1,551,612 | 0.32% | F |
U.S. Census Bureau data (2024)
La Habra (ZIP 90631) operates as a suburban gateway straddling the Orange County and Los Angeles County border, offering investors a relatively more affordable entry point into the competitive O.C. market while retaining access to major economic hubs. The community maintains a strong residential character, bolstered by the presence of the La Habra Children’s Museum and proximity to the Brea Mall retail corridor. Recent city planning initiatives emphasize downtown revitalization and infrastructure maintenance, aiming to preserve neighborhood stability and attract long-term residents seeking a quieter alternative to the denser inland core.
From a strictly numerical perspective, the spread between subsidized and market pricing is tight. The HUD SAFMR for a 2-bedroom unit stands at $2,350, while current market rents (Zillow ZORI) reach $2,758, creating a negative gap of $408 per month if you strictly cap at the voucher limit. Real estate values here are substantial, with a median home value of $942,836 and a specific median 2BR sale price of $641,746. Properties are moving relatively quickly, with a median days on market of 34 days, indicating brisk turnover despite high price points.
Demand drivers are anchored by a solid renter share of 38.5% and a healthy median household income of $104,251, suggesting a tenant base that can shoulder rent increases or transition to market-rate tenancy. Families are drawn to the area for its access to the highly-rated La Habra City School District and the convenience of the 91 and 605 freeways, which facilitate commutes to employment centers in Anaheim and Irvine. These amenities help sustain occupancy rates even when rental premiums approach the upper limits of the local market.
The Section 8 verdict for 90631 leans toward appreciation and stability rather than immediate aggressive cash flow. With the 2BR SAFMR lagging behind market rent by $408, voucher units may not maximize immediate yield compared to market-rate tenants. However, the high median income and strong school ratings create a low-risk environment for long-term asset appreciation, making this a suitable hold for investors prioritizing capital preservation over monthly spread optimization.
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.