Location: Santa Ana-Anaheim-Irvine, CA | Metro: Santa Ana-Anaheim-Irvine, CA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $2,580 |
| 1 Bedroom | $2,610 |
| 2 Bedrooms | $3,060 |
| 3 Bedrooms | $4,160 |
| 4 Bedrooms | $4,970 |
| 5 Bedrooms | $5,765 |
| 6 Bedrooms | $6,457 |
| 7 Bedrooms | $6,974 |
| 8 Bedrooms | $7,323 |
The analysis for Section 8 properties in ZIP code 92674 centers around the discrepancy between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR for ZIP 92674 is set at $2780. However, the current market rent data is not available, which makes it challenging to provide an exact dollar figure or percentage gap.
In the absence of market rent data, it's important to understand the implications of relying solely on FMR. The FMR is a benchmark established by the U.S. Department of Housing and Urban Development (HUD) to determine payment standards for Section 8 housing vouchers. It is based on the 40th percentile of gross rents for standard quality rental units in a given area. This means that if the actual market rent exceeds the FMR, landlords participating in the Section 8 program may receive less than what they could charge in the open market.
Given the lack of specific market rent data, we can infer that landlords must carefully consider the potential impact of accepting Section 8 tenants. In a scenario where the market rent is higher than the FMR, landlords would be foregoing additional income that could be earned by renting to non-voucher holders. This difference represents the cost of housing voucher tenants below open-market rates.
To anchor this analysis in the context of Unknown, CA, it's worth noting that the percentage of renters, median home value, and median income are also not available. These factors are crucial in understanding the broader economic landscape and how it might affect the demand for Section 8 housing and the overall investment strategy.
Despite these limitations, the decision to participate in the Section 8 program should be made with a clear understanding of the financial trade-offs involved. Landlords should weigh the stability of guaranteed rent payments against the potential for higher yields from market-rate tenants.
Data Sources: FMR data from HUD (2027).
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.