Location: Santa Ana-Anaheim-Irvine, CA | Metro: Santa Ana-Anaheim-Irvine, 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 | $3,140 |
| 1 Bedroom | $3,180 |
| 2 Bedrooms | $3,720 |
| 3 Bedrooms | $5,050 |
| 4 Bedrooms | $6,040 |
| 5 Bedrooms | $7,006 |
| 6 Bedrooms | $7,847 |
| 7 Bedrooms | $8,475 |
| 8 Bedrooms | $8,899 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $3,720 | $1,003,789 | 0.37% | F |
| 3BR | $5,050 | $1,420,182 | 0.36% | F |
| 4BR | $6,040 | $2,436,249 | 0.25% | F |
| 5BR | $7,006 | $3,389,970 | 0.21% | F |
U.S. Census Bureau data (2024)
The ZIP code 92602, located in Irvine, California, serves as an ideal cash-flow anchor within a Section 8 portfolio strategy. This assessment is based on the Fiscal Year 2024 Fair Market Rent (FMR) data, which indicates that the FMR for ZIP 92602 is set at $3410. Comparatively, the market rent for the same area stands at $3388, creating a slight but favorable spread in favor of the FMR. This means landlords participating in the Section 8 program can expect to receive slightly higher rents than what the market currently offers, ensuring steady and predictable cash flow.
The median home value in ZIP 92602 is exceptionally high at $2,044,924, reflecting the affluent nature of the area. Despite this, the price-cut share is only 0.2%, indicating that rental properties here rarely need to be discounted to attract tenants. The Days on Market (DOM) statistic for 92602 is 57 days, which is relatively low, suggesting that rental units are quickly occupied once they become available. This rapid turnover reduces vacancy rates and maintains consistent cash flow.
Furthermore, the median income in the area is $161,620, which is significantly above the national average. This high median income supports a robust demand for housing, both rental and owned, and ensures that tenants are likely to have stable employment and financial situations, reducing the risk of default on rental payments.
A cash-flow anchor in a real estate investment portfolio is crucial for providing reliable income streams. ZIP 92602 excels in this role due to the combination of a slightly favorable FMR, low price-cut share, quick occupancy rates, and high median incomes. These factors collectively contribute to a secure and predictable cash flow, making it an excellent choice for landlords and small-portfolio investors seeking stability within their Section 8 investments.
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.