Section 8 Fair Market Rent (FMR) for ZIP 92684 - 2027

FY 2027 Fair Market Rent Rates

The economics of Section 8 in ZIP code 92684, located in Orange County, California, are straightforward when you understand how the housing vouchers operate. For a two-bedroom apartment, the Section 8 payment standard, known as the SAFMR (Single Area Fair Market Rent), is set at $2780 per month for fiscal year 2024. This figure is specific to this ZIP code, meaning it reflects the rental rates in 92684 alone.

Landlords often wonder about the actual amount they will receive once the tenant's portion and utility allowances are factored into the equation. Here’s a breakdown:

• Tenant Contribution: Tenants typically pay 30% of their adjusted income towards rent. If we assume an average adjusted income of $1853 (based on the FY 2024 HUD guidelines for the 40th percentile of median income for a household of four in Orange County), the tenant would contribute approximately $556 per month.
• Voucher Payment: The remainder of the rent is covered by the housing authority. In this case, the voucher would cover the difference between the SAFMR ($2780) and the tenant's contribution ($556), which equals $2224.
• Utility Allowances: Utility allowances vary but are generally included in the SAFMR. They do not increase the total reimbursement to landlords beyond the SAFMR limit.

In summary, if you rent a two-bedroom unit at the SAFMR rate of $2780, the landlord will receive $2224 directly from the housing authority, and the tenant will contribute $556. Given that local market rents are not provided, it's important to note that if market rents exceed the SAFMR, landlords might face a gap where they need to either accept a lower rent or seek non-voucher tenants. Conversely, if market rents are below the SAFMR, landlords could see a surplus in their rental income.

For ZIP 92684, the typical reimbursement gap for a two-bedroom apartment is $556 per month, which is the difference between the SAFMR and the total amount received from both the voucher and tenant contributions. This gap must be filled by the landlord or accepted as a reduction in expected rental income. However, if market rents are below $2780, there would be no gap, and landlords might even see a slight surplus, making Section 8 a stable and predictable source of income.

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.