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 | $3,610 |
| 1 Bedroom | $3,650 |
| 2 Bedrooms | $4,280 |
| 3 Bedrooms | $5,810 |
| 4 Bedrooms | $6,950 |
| 5 Bedrooms | $8,062 |
| 6 Bedrooms | $9,029 |
| 7 Bedrooms | $9,751 |
| 8 Bedrooms | $10,239 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $4,280 | $992,537 | 0.43% | F |
| 3BR | $5,810 | $1,409,502 | 0.41% | F |
| 4BR | $6,950 | $1,848,238 | 0.38% | F |
| 5BR | $8,062 | $2,384,914 | 0.34% | F |
U.S. Census Bureau data (2024)
The real estate landscape in ZIP 92673, San Clemente, CA, presents a complex but promising scenario for landlords and small-portfolio investors. The median home value stands at $1,736,205, indicating a high-end market where property values have remained resilient. Only 0.2% of listings have seen reductions, suggesting that sellers are maintaining their asking prices, a sign of strong pricing power. The median days on market (DOM) being listed as 'N/A' suggests either an exceptionally quick market or a limited dataset, but combined with the low reduction rate, it points towards a robust seller's market.
On the rental side, the Fair Market Rent (FMR) for ZIP 92673 in fiscal year 2024 is projected to be $3800. However, the current market rent, as indicated by ZORI, is $3,980. This slight premium over the FMR signals that there is still demand for rental properties in the area, even at slightly above average rates. For landlords, this means maintaining rents close to the ZORI figure could continue to attract tenants despite the higher-than-average costs.
For long-term hold investors, the setup in San Clemente implies a steady appreciation thesis. With median home values remaining high and few listings reducing their prices, the underlying real estate market supports asset value retention and gradual growth. The gap between FMR and market rent also indicates that rental properties can maintain their value and potentially increase in value if market rents rise further, aligning with broader trends in the area.
Investors should consider diversifying their portfolios to include both single-family homes and multi-unit properties, given the strong seller's market and stable rental dynamics. Single-family homes benefit from the high median value and potential for capital appreciation, while multi-unit properties can leverage the consistent rental demand. Both strategies position investors to capitalize on San Clemente's enduring appeal as a coastal community with high desirability and limited supply.
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.