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 | $3,050 |
| 1 Bedroom | $3,080 |
| 2 Bedrooms | $3,610 |
| 3 Bedrooms | $4,900 |
| 4 Bedrooms | $5,860 |
| 5 Bedrooms | $6,798 |
| 6 Bedrooms | $7,614 |
| 7 Bedrooms | $8,223 |
| 8 Bedrooms | $8,634 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $3,610 | $900,919 | 0.4% | F |
| 3BR | $4,900 | $1,291,234 | 0.38% | F |
| 4BR | $5,860 | $1,690,976 | 0.35% | F |
| 5BR | $6,798 | $1,967,655 | 0.35% | F |
U.S. Census Bureau data (2024)
The potential pitfalls for a Section 8 landlord in ZIP 92604, located in Irvine, CA, are significant. Firstly, tenant turnover can be a major issue, especially when considering the market rent of $3,309 versus the Federal Market Rent (FMR) of $3,450 for FY 2024. This difference indicates that tenants might find it difficult to keep up with the higher rent payments, leading to frequent moves and higher vacancy rates. Secondly, vacancy exposure is a concern due to the lack of data on days on market (DOM), which makes it challenging to predict how long a property might remain vacant between tenancies. Lastly, the deferred-maintenance exposure is notable, given the typical home value of $1,393,063 and a median income of $133,869. The disparity between these figures suggests that residents might struggle to afford necessary repairs and maintenance, potentially leaving the landlord responsible for these costs.
However, these risks must be weighed against the strong demand for rental properties in the area. With a 36.6% renter share, there is a high concentration of renters, many of whom likely qualify for housing vouchers. This high renter density usually translates into a robust demand for Section 8 tenancies, which can help mitigate some of the risks associated with tenant turnover and vacancy exposure.
In conclusion, the investment risk for a first-time Section 8 landlord in ZIP 92064 is moderate.
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.