Location: Santa Ana-Anaheim-Irvine, CA | Metro: Santa Ana-Anaheim-Irvine, CA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $2,580 |
| 1 Bedroom | $2,610 |
| 2 Bedrooms | $3,060 |
| 3 Bedrooms | $4,160 |
| 4 Bedrooms | $4,970 |
| 5 Bedrooms | $5,765 |
| 6 Bedrooms | $6,457 |
| 7 Bedrooms | $6,974 |
| 8 Bedrooms | $7,323 |
The economics of Section 8 housing in ZIP code 90633, which falls under Santa Ana-Anaheim-Irvine County, are defined by the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment, set at $2780 for the fiscal year 2024. This figure is specific to this ZIP code and reflects the localized rental market conditions.
Section 8 vouchers aim to cover the difference between what a low-income family can afford and the SAFMR. For a landlord, understanding how this works involves knowing the components of the voucher payment. The voucher itself covers up to 70% of the SAFMR, meaning it would pay a maximum of $1946 for a two-bedroom unit in ZIP 90633. The remaining 30% must be paid by the tenant directly, amounting to $834 in this case.
Additionally, the voucher includes an allowance for utilities. As of FY 2024, the standard utility allowance for a two-bedroom apartment is around $400. This utility allowance is included in the total reimbursement from the housing authority to the landlord, bringing the voucher's contribution closer to the SAFMR but not exceeding it.
To summarize, if you own a two-bedroom apartment in ZIP 90633, the voucher will cover a maximum of $1946 towards the rent, and the tenant will be responsible for $834. The utility allowance of approximately $400 is also covered by the voucher program, which can help offset some of the costs tenants might incur. However, since the local market rent data is currently unavailable, we cannot calculate the exact surplus or shortfall in relation to market rates. Typically, landlords find that the SAFMR closely aligns with market rents, ensuring a stable income flow without significant gaps or surpluses.
In conclusion, landlords in ZIP 90633 participating in the Section 8 program can expect a reimbursement of $1946 per month for a two-bedroom unit, plus a utility allowance of about $400. The SAFMR system aims to keep the housing affordable while providing a predictable income source for landlords.
Data Sources: FMR data from HUD (2027).
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.