Section 8 Fair Market Rent (FMR) for ZIP 92616 - 2027

Location: Santa Ana-Anaheim-Irvine, CA | Metro: Santa Ana-Anaheim-Irvine, CA HUD Metro FMR Area

FY 2027 Fair Market Rent Rates

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

To determine if a landlord should invest in ZIP 92616 for Section 8 properties, follow this decision tree based on the provided data.

Step 1: Does the Fair Market Rent (FMR) of $2780 cover the debt service on a property in this ZIP code?

If the FMR of $2780 does not cover the debt service on a property, the answer is No. Investing in Section 8 properties requires that the rental income at least meets the debt service to ensure financial viability.

Step 2: Is the market rent above, at, or below the FMR of $2780?

If the market rent is above $2780, then landlords might prefer to rent their properties to market-rate tenants instead of participating in Section 8, as they can potentially earn higher rent. The answer is No.
If the market rent is at or slightly below $2780, the decision becomes more nuanced. Landlords can consider Section 8 but must weigh the pros and cons, such as tenant stability versus potential maintenance issues. The answer is It Depends.

Step 3: Are the percentage of renters and days on market (DOM) sufficient to meet demand?

If the percentage of renters is high and the DOM is low, there is strong demand for rentals in this area, which supports a positive outlook for Section 8 investments. The answer is Yes.
If the percentage of renters is moderate and the DOM is average, demand is present but not robust. The decision will depend on other factors like competition and vacancy rates. The answer is It Depends.
If the percentage of renters is low and the DOM is high, indicating weak demand, landlords should reconsider investing in Section 8 properties in this ZIP code. The answer is No.

Note: Specific figures for market rent, percentage of renters, and days on market were not provided in the data. These details are crucial for making an informed investment decision and should be obtained from reliable sources before proceeding.

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.