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 | $3,200 |
| 1 Bedroom | $3,240 |
| 2 Bedrooms | $3,790 |
| 3 Bedrooms | $5,150 |
| 4 Bedrooms | $6,150 |
| 5 Bedrooms | $7,134 |
| 6 Bedrooms | $7,990 |
| 7 Bedrooms | $8,629 |
| 8 Bedrooms | $9,060 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $3,240 | $459,338 | 0.71% | D |
| 2BR | $3,790 | $683,340 | 0.55% | F |
| 3BR | $5,150 | $1,135,339 | 0.45% | F |
| 4BR | $6,150 | $1,406,550 | 0.44% | F |
| 5BR | $7,134 | $1,759,536 | 0.41% | F |
U.S. Census Bureau data (2024)
3340 is the Fair Market Rent (FMR) for ZIP code 92610 in Lake Forest, CA, for fiscal year 2024, indicating the maximum amount Section 8 participants can be charged for a two-bedroom apartment. 3296 is the Zillow Observed Rent Index (ZORI), reflecting the average market rent for the area, which is slightly below the FMR, suggesting a favorable environment for landlords participating in the program. 1271986 represents the median home value in the area, a figure that underscores the affluent nature of Lake Forest, where homes are significantly more expensive than the national average. 17.4 is the percentage of residents who are renters, a relatively low share compared to other areas, which might imply a smaller pool of potential Section 8 tenants but also a higher likelihood of retaining quality tenants due to the competitive rental market. 195046 is the median income of the area, a high figure that could influence the willingness of residents to participate in the Section 8 program, given the cost of living. N/A indicates that there is no available data on the days on market (DOM) for properties in this ZIP code, possibly due to the strong local real estate market and rapid sales cycles. 0.2 is the percentage of listings that have been price-cut, a very low figure that suggests sellers in Lake Forest rarely need to lower their asking prices, further indicating a robust real estate market.
In conclusion, the combination of a slightly lower market rent than the FMR, an affluent community with a high median income, and a strong real estate market with minimal price-cutting activity makes ZIP 92610 a viable location for landlords and small-portfolio investors interested in Section 8 participation. However, the limited share of renters might necessitate strategic targeting of Section 8 participants. The verdict: Section 8 is feasible in Lake Forest, CA, but requires careful tenant selection.
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.