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 | $2,420 |
| 1 Bedroom | $2,480 |
| 2 Bedrooms | $2,920 |
| 3 Bedrooms | $3,960 |
| 4 Bedrooms | $4,730 |
| 5 Bedrooms | $5,487 |
| 6 Bedrooms | $6,145 |
| 7 Bedrooms | $6,637 |
| 8 Bedrooms | $6,969 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,480 | $284,976 | 0.87% | C |
| 2BR | $2,920 | $464,203 | 0.63% | D |
| 3BR | $3,960 | $921,808 | 0.43% | F |
U.S. Census Bureau data (2024)
The potential downsides of investing in ZIP 92637 in Laguna Woods, CA, under the Section 8 program are significant. Tenant turnover poses a notable risk due to the difference between the market rent of $2,886 and the Fair Market Rent (FMR) of $2,600 for FY 2024. This discrepancy can lead to frequent changes in occupancy, which is costly and time-consuming for property owners. Additionally, the vacancy exposure is heightened by an average Days on Market (DOM) of 26 days, indicating that properties may remain unoccupied longer than desired, further impacting cash flow.
The deferred maintenance exposure is another critical issue. With a typical home value of $470,899 and a median income of $59,269, many residents may struggle to maintain their homes adequately. This financial strain could translate into higher maintenance costs for landlords, especially when dealing with tenants who rely on Section 8 vouchers to afford housing.
However, these risks must be weighed against the substantial renter share of 28.4%. High renter density often correlates with increased demand for rental properties, including those utilizing Section 8 vouchers. This demand can provide a steady stream of qualified tenants, reducing the likelihood of prolonged vacancies and ensuring consistent income.
In conclusion, the investment risk for a first-time Section 8 landlord in ZIP 92637 is moderate.
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.