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 | $2,600 |
| 1 Bedroom | $2,630 |
| 2 Bedrooms | $3,080 |
| 3 Bedrooms | $4,180 |
| 4 Bedrooms | $5,000 |
| 5 Bedrooms | $5,800 |
| 6 Bedrooms | $6,496 |
| 7 Bedrooms | $7,016 |
| 8 Bedrooms | $7,367 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,630 | $1,015,566 | 0.26% | F |
| 2BR | $3,080 | $1,005,477 | 0.31% | F |
| 3BR | $4,180 | $1,382,405 | 0.3% | F |
| 4BR | $5,000 | $1,913,208 | 0.26% | F |
| 5BR | $5,800 | $2,482,576 | 0.23% | F |
U.S. Census Bureau data (2024)
Costa Mesa's 92627 zip code encompasses the vibrant South Coast Metro area, blending urban sophistication with beach-city proximity. This neighborhood is a hub for retail and professional services, anchored significantly by the presence of the South Coast Plaza shopping complex and the adjacent Segerstrom Center for the Arts. These institutions not only drive local tourism but also create a steady stream of employment opportunities in hospitality, retail, and the arts, contributing to a dense, walkable character that appeals to working professionals and families alike.
From a pure revenue standpoint, Section 8 investors face a challenging spread here. The HUD SAFMR for a 2-bedroom unit in FY2024 is set at $2,680, yet current market rents (Zillow ZORI) sit at $3,218, leaving a gap of $538 per month if you cap rents at the voucher limit. The cost of entry is steep, with a median home value of $1,365,815 and a specific median 2BR sales price of $988,837. However, turnover risk is mitigated by a median days on market of just 43 days, signaling high liquidity for sellers and strong demand for housing.
The tenant pool is substantial, supported by a 61.5% renter share and a median household income of $108,994. While the income level is high, it often correlates with a workforce employed in the high-cost service sectors surrounding South Coast Plaza. For voucher holders, the area offers exceptional amenities, including top-tier access to the highly-rated Newport-Mesa Unified School District and major transit corridors like the 405 and 55 freeways, which connect residents to the broader Orange County job market.
The verdict for 92627 leans heavily on appreciation and stability rather than immediate cashflow. With the significant gap between market rent and the HUD payment cap, relying solely on the SAFMR for a 2BR unit will likely result in negative monthly returns relative to market parity. The strongest angle here is banking on the area's long-term asset growth and the low vacancy risk inherent in a neighborhood where 61.5% of households rent, ensuring a consistent occupancy rate even if the voucher payments lag behind open-market rates.
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.