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 | $3,080 |
| 1 Bedroom | $3,120 |
| 2 Bedrooms | $3,650 |
| 3 Bedrooms | $4,960 |
| 4 Bedrooms | $5,930 |
| 5 Bedrooms | $6,879 |
| 6 Bedrooms | $7,704 |
| 7 Bedrooms | $8,320 |
| 8 Bedrooms | $8,736 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $3,120 | $666,733 | 0.47% | F |
| 2BR | $3,650 | $892,353 | 0.41% | F |
| 3BR | $4,960 | $1,279,659 | 0.39% | F |
| 4BR | $5,930 | $1,652,200 | 0.36% | F |
| 5BR | $6,879 | $2,168,350 | 0.32% | F |
U.S. Census Bureau data (2024)
ZIP 92606, located within the Santa Ana-Anaheim-Irvine, CA HUD Metro FMR Area, presents a unique opportunity for inclusion in a Section 8 portfolio strategy. This area is best classified as an appreciation play due to several key factors.
The Federal Market Rent (FMR) for ZIP 92606 in fiscal year 2024 is set at $3400, which is above the market average of $3,267 for the same period. However, the primary focus should be on the long-term potential for property value growth. With a median home value of $1,498,347, this ZIP code is situated in a high-value region that is likely to experience steady appreciation over time. The low price-cut share of 0.2% indicates that properties in this area maintain their value well, rarely needing to be discounted for sale. This stability is crucial for long-term investment strategies, particularly those relying on appreciation for returns.
The days on market (DOM) figure being N/A suggests that homes in ZIP 92606 sell quickly once they are listed, often without extended periods of exposure. Rapid turnover can be advantageous for investors looking to minimize holding costs and maximize liquidity. Additionally, the high median income of $135,598 supports a robust local economy, which can drive demand for rental properties and contribute to higher rents and greater occupancy rates.
While ZIP 92606 has a significant renter share of 64.1%, this does not make it a primary diversifier in a Section 8 portfolio. Instead, it serves as an appreciation play where the primary goal is capital appreciation rather than immediate cash flow optimization. The slight premium of the FMR over the market average does not significantly impact the overall strategy, given the strong fundamentals supporting property value growth in this area.
To summarize, ZIP 92606 is best suited as an appreciation play in a Section 8 portfolio strategy. Its high median home value, low price-cut share, rapid sales cycle, and strong median income all point towards a stable and appreciating market, making it a valuable asset for long-term growth.
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.