Section 8 Fair Market Rent (FMR) for ZIP 92624 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Housing Authorities Serving ZIP 92624

• Orange County Housing Authority (Santa Ana, CA) - 11,686 Section 8 vouchers
• City of Anaheim Housing Authority (Anaheim, CA) - 6,835 Section 8 vouchers
• Housing Authority of the City of Santa Ana (Santa Ana, CA) - 3,398 Section 8 vouchers
• Housing Authority of the City of Garden Grove (Garden Grove, CA) - 2,437 Section 8 vouchers

To determine if a landlord should buy in ZIP code 92624 (Dana Point, CA) for Section 8 investment, follow this decision tree:

Step 1: Debt Service Coverage Ratio (DSCR)

• If the Fair Market Rent (FMR) of $3150 per month can cover the debt service on a property costing $1,668,565, proceed to Step 2.
• The DSCR calculation requires knowing the monthly debt service amount, which isn't provided here. However, if the FMR does not exceed the monthly debt service, then the answer is No. The landlord would not be able to sustain the property financially without relying on non-Section 8 tenants to make up the difference.

Step 2: Market Rent Comparison

• The Zillow Observed Rent Index (ZORI) for the area is $4,841 per month. Compare this to the FMR of $3150.
• If market rent is significantly higher than FMR, then it depends on the landlord's strategy. They might prefer to seek non-Section 8 tenants who can pay higher rents.
• If market rent is close to or below FMR, then the landlord is more likely to rely on Section 8 tenants, making the answer Yes contingent upon the property's ability to clear debt service.

Step 3: Rental Demand Assessment

• In Dana Point, the rental rate stands at 37.5% of the total housing units. The average days on market (DOM) for rentals is not provided, but typically a lower DOM indicates higher demand.
• If the DOM is low, and there's a high percentage of renters, the answer is Yes. There is sufficient demand for rental properties, including those that might be rented under Section 8.
• If the DOM is high, indicating a slower rental market, then the answer is No. Even with a decent rental rate, the slow turnover could be problematic for a landlord relying solely on Section 8 tenants.
• If the DOM is moderate, the answer is It Depends. The landlord would need to evaluate other factors such as the vacancy rate, local job growth, and the overall economic health of the area.

Note: The final decision hinges on the landlord's financial situation, risk tolerance, and investment goals. A thorough analysis of the local real estate market and familiarity with Section 8 guidelines is recommended before making any purchase decisions.

Data Sources: FMR data from HUD (2027). 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.