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 | $2,870 |
| 1 Bedroom | $2,900 |
| 2 Bedrooms | $3,400 |
| 3 Bedrooms | $4,620 |
| 4 Bedrooms | $5,520 |
| 5 Bedrooms | $6,403 |
| 6 Bedrooms | $7,171 |
| 7 Bedrooms | $7,745 |
| 8 Bedrooms | $8,132 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $3,400 | $3,332,249 | 0.1% | F |
| 3BR | $4,620 | $4,739,661 | 0.1% | F |
| 4BR | $5,520 | $5,231,311 | 0.11% | F |
| 5BR | $6,403 | $5,543,115 | 0.12% | F |
U.S. Census Bureau data (2024)
The ZIP code 92662, located in Newport Beach, California, presents an interesting scenario when analyzing housing affordability from a renter's perspective. The median household income here stands at $165,955, which is notably high. However, the market rate for rent, known as the Zillow Observed Rent Index (ZORI), is $3,658. This figure represents the typical monthly rent paid by tenants in the area.
Comparatively, the Fair Market Rent (FMR) for ZIP 92662, set at $3,090 for fiscal year 2024, is the amount the federal government deems sufficient for Section 8 vouchers to cover. This means that a household receiving a Section 8 voucher would have their rent subsidized up to $3,090 per month, leaving landlords to seek additional payments from tenants to meet the market rate of $3,658.
In ZIP 92662, where 49.7% of the population are renters, the disparity between the market rate and the voucher payment standard is significant. Given the population of 2,294, there are approximately 1,137 renters in this ZIP code. This affordability gap implies that landlords face a competitive challenge in attracting tenants who can pay the full market rate without additional financial assistance.
Landlords considering whether to accept Section 8 vouchers or focus on cash-paying tenants must weigh the benefits and drawbacks. While accepting vouchers ensures a steady stream of rental income, it may also require landlords to charge the tenant the difference between the voucher amount and the ZORI. On the other hand, targeting cash-paying tenants could lead to higher rents but also poses the risk of a limited pool of potential renters who can afford the full $3,658.
The takeaway for landlords is that the decision to accept Section 8 vouchers should be based on a careful assessment of the local rental market. In ZIP 92662, given the high median income and the significant gap between the market rate and the voucher standard, landlords might find success in a mixed strategy, offering both voucher-accepted and cash-only units to cater to the diverse needs of the community.
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.