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 | $2,680 |
| 1 Bedroom | $2,710 |
| 2 Bedrooms | $3,170 |
| 3 Bedrooms | $4,310 |
| 4 Bedrooms | $5,150 |
| 5 Bedrooms | $5,974 |
| 6 Bedrooms | $6,691 |
| 7 Bedrooms | $7,226 |
| 8 Bedrooms | $7,587 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,710 | $434,840 | 0.62% | D |
| 2BR | $3,170 | $730,459 | 0.43% | F |
| 3BR | $4,310 | $1,097,445 | 0.39% | F |
| 4BR | $5,150 | $1,898,740 | 0.27% | F |
| 5BR | $5,974 | $3,159,799 | 0.19% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP 92675, located within the San Juan Capistrano, CA, and Santa Ana-Anaheim-Irvine, CA HUD Metro FMR Area, does not align favorably. The Fair Market Rent (FMR) set at $3000 for the fiscal year 2024 contrasts sharply with the market rent, which stands at $4,258 according to ZORI (Zillow Observed Rental Index). This discrepancy means that landlords relying solely on the FMR will face significant financial challenges.
Acquisition in this area is relatively affordable. With a median home value of $1,338,897, the real estate market is accessible compared to other high-value areas. Additionally, homes take an average of 14 days to sell (DOM), indicating a brisk market where properties move quickly. Only 0.1% of listed homes experience price cuts, suggesting strong seller confidence and stable property values.
Tenant demand is present but not overwhelming. The population of 92675 is 35,095, with 19.0% being renters. This indicates a moderate pool of potential tenants, though the percentage is lower than in some urban centers, it still represents a viable market for rental properties.
Verdict: While the acquisition cost in ZIP 92675 is reasonable, the mismatch between the HUD's FMR and the actual market rent poses a significant risk. Landlords must consider supplementary income sources or higher occupancy rates to balance their investment. Despite the challenges, the quick turnover of properties and the presence of a steady tenant base make this area worth considering for those willing to manage rental risks effectively.
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.