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 | $3,030 |
| 1 Bedroom | $3,070 |
| 2 Bedrooms | $3,590 |
| 3 Bedrooms | $4,880 |
| 4 Bedrooms | $5,830 |
| 5 Bedrooms | $6,763 |
| 6 Bedrooms | $7,575 |
| 7 Bedrooms | $8,181 |
| 8 Bedrooms | $8,590 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $3,590 | $2,608,900 | 0.14% | F |
| 3BR | $4,880 | $4,173,613 | 0.12% | F |
| 4BR | $5,830 | $6,070,237 | 0.1% | F |
| 5BR | $6,763 | $8,321,309 | 0.08% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP 92661, which encompasses Newport Beach, CA, and is part of the Santa Ana-Anaheim-Irvine, CA HUD Metro FMR Area, does not work favorably for landlords. The Fair Market Rent (FMR) set at $3210 for the fiscal year 2024 is significantly lower than the market rent, indicated by the Zillow Observed Rental Index (ZORI) at $8,924. This discrepancy means that landlords participating in the Section 8 program will receive a subsidy that falls short of covering the actual market rates, leading to reduced profitability.
Acquisition in this area is not affordable for most investors. With a median home value of $4,505,903, purchasing properties in ZIP 92661 comes at a high cost. The lack of available data on days on market (DOM) and the low percentage of homes needing price cuts (0.2%) suggest that the market is tight and homes are selling quickly at their listed prices, further complicating acquisition efforts for budget-conscious investors.
Tenant demand is present but limited by the high cost of living. The ZIP code has a population of 3,079, with 61.1% of residents being renters. Despite this significant renter share, the overall number of potential tenants is constrained by the area's high rents and property values, which could deter many from seeking housing here.
In conclusion, ZIP 92661 presents challenges for landlords and small-portfolio investors due to the unfavorable rent math, high acquisition costs, and limited tenant pool despite a strong renter share. The financial viability of operating in this area under the Section 8 program is questionable given these factors. Investors should carefully consider these points before committing resources to this market.
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.