Section 8 Fair Market Rent (FMR) for ZIP 92648 - 2027

Investment Score for ZIP 92648

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$2,710
1 Bedroom	$2,740
2 Bedrooms	$3,210
3 Bedrooms	$4,360
4 Bedrooms	$5,210
5 Bedrooms	$6,044
6 Bedrooms	$6,769
7 Bedrooms	$7,311
8 Bedrooms	$7,677

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$2,740	$618,777	0.44%	F
2BR	$3,210	$987,969	0.32%	F
3BR	$4,360	$1,577,282	0.28%	F
4BR	$5,210	$2,235,894	0.23%	F
5BR	$6,044	$2,940,903	0.21%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 92648 (Huntington Beach, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 92648 is set by HUD to reflect the average rent that a tenant would pay for a standard unit in the area. For 2026, the FMRs are as follows: - 0BR: $2770 - 1BR: $2830 - 2BR: $3340 (which represents 30.8% of the median household income) - 3BR: $4530 - 4BR: $5410 However, the actual rental market in Huntington Beach is significantly higher. The Zillow median price for a 2-bedroom apartment is $982,100, which translates into a monthly rent of approximately $7,350 based on typical mortgage payments and property taxes. This means the actual rent is about 24.5 times the FMR for a 2BR unit. Given these figures, it’s clear that the FMR is far below the actual rental rates in the area. This creates significant constraints for Section 8 voucher holders, who can only afford units priced at or below the FMR. Consequently, voucher holders face a severe shortage of available units, as most landlords prefer to charge market rates that are much higher. #### Affordability & Renter Profile ZIP code 92648 has a population of 45,827, with 54.5% of residents being renters. This indicates a strong demand for rental properties in the area. The occupancy rate stands at 93.6%, suggesting that the market is quite tight, with few vacancies available. The median household income in the area is $130,164, which is relatively high compared to the national average. However, the affordability of housing is a major concern, especially for those relying on Section 8 vouchers. A 2BR unit priced at the FMR of $3340 represents only 30.8% of the median income, which is well below what most residents might be willing to pay given their income levels. This tight market and high income level mean that many residents can afford to pay above the FMR, but it also implies that there is a significant portion of the population who struggle to find affordable housing. The high rent-to-income ratio suggests that the market is very competitive, and landlords have little incentive to accept lower rents. #### Investor Angle From an investor perspective, the ZIP code 92648 presents a challenging scenario. The FMRs are significantly lower than the actual market rents, making it difficult to achieve positive cash flow if you are limited to charging the FMR. For example, a 2BR unit at the FMR of $3340 would need to cover all expenses, including mortgage payments, property taxes, maintenance, and other costs. Given the high median home value and the associated costs, achieving positive cash flow at the FMR is unlikely. The investment grade for this ZIP code would be considered low due to the difficulty in finding tenants who can afford market rates and the limited number of units that fall within the FMR range. Investors should carefully consider the potential for vacancy and the challenges of maintaining profitability when focusing on Section 8 properties in this area. #### Specific Actionable Insights 1. **Focus on Lower-Rent Units**: Given the high market rents, investors should focus on developing or acquiring properties that can be rented out at or near the FMR. For instance, a 1BR unit at $2830 or a 0BR unit at $2770 might be more feasible for Section 8 tenants. This strategy could help mitigate the risk of vacancy and ensure steady cash flow. 2. **Consider Multi-Family Properties**: While single-family homes are popular in Huntington Beach, multi-family properties might offer better opportunities for Section 8 tenants. These units often have lower per-unit costs and can accommodate larger families, making them more attractive to voucher holders. For example, a 3BR unit at $4530 might be more accessible to families using Section 8 vouchers. 3. **Partner with Local Agencies**: To navigate the complexities of the Section 8 program in a high-cost area like Huntington Beach, partnering with local housing agencies and non-profits can provide valuable insights and support. They can help identify areas where there is a higher concentration of voucher holders and assist in the process of securing tenants. #### Bottom Line Based on the analysis, the recommendation for Section 8-focused investors in ZIP code 92648 is to **skip** this market. The high market rents and tight occupancy rates make it extremely difficult to find properties that can be rented out at the FMR while still covering all operational costs. Additionally, the limited supply of affordable units and the high competition for rentals suggest that profitability would be challenging to achieve. Investors should look for markets with more favorable conditions for Section 8 properties, where the FMR is closer to the actual market rents.

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.