Section 8 Fair Market Rent (FMR) for ZIP 92691 - 2027

Investment Score for ZIP 92691

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$2,820
1 Bedroom	$2,850
2 Bedrooms	$3,340
3 Bedrooms	$4,540
4 Bedrooms	$5,420
5 Bedrooms	$6,287
6 Bedrooms	$7,041
7 Bedrooms	$7,604
8 Bedrooms	$7,984

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$2,850	$426,909	0.67%	D
2BR	$3,340	$643,401	0.52%	F
3BR	$4,540	$1,161,442	0.39%	F
4BR	$5,420	$1,358,985	0.4%	F
5BR	$6,287	$1,578,407	0.4%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 92691 (Mission Viejo, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 92691 in Mission Viejo, California, is set by HUD for the year 2026. The FMRs for different unit types are as follows: - 0 Bedroom: $2930 - 1 Bedroom: $3000 - 2 Bedrooms: $3530 (which represents 30.0% of the median household income) - 3 Bedrooms: $4790 - 4 Bedrooms: $5720 To understand how these FMRs compare to actual rents, we need to consider the price-to-FMR ratio. For a 2-bedroom unit, the Zillow median price is $650,855, which translates into a monthly rent of approximately $5424 based on a typical mortgage payment (assuming a 4.5% interest rate and a 30-year term). This means that the actual rent is significantly higher than the FMR, with a price-to-FMR ratio of 15.4x. This high ratio indicates that voucher holders face significant constraints when trying to find affordable housing. The FMR for a 2-bedroom unit is $3530, but the average rent is nearly $5424, making it challenging for tenants to find units that accept their vouchers without paying a substantial portion out-of-pocket. This gap can lead to a scarcity of available units for Section 8 voucher holders, limiting their housing options. #### Affordability & Renter Profile Mission Viejo has a median household income of $141,045, which places it in a relatively affluent category. The population of 45,841 residents includes a significant number of homeowners, with only 22.7% being renters. This low percentage of renters suggests that the rental market is tight, with limited supply relative to demand. The occupancy rate of 96.7% further supports this notion, indicating that most available units are occupied. Given the high median income and the tight rental market, the typical renter in Mission Viejo likely has a strong financial background. However, the presence of Section 8 voucher holders adds another layer to the market dynamics. These voucher holders would typically have lower incomes, around 30% of the median household income, or about $42,313.50 annually. This group faces significant challenges due to the high cost of living and the limited availability of units that accept their vouchers. #### Investor Angle From an investor perspective, the key question is whether properties rented at FMR levels can generate positive cash flow. Given the high actual rent compared to FMR, properties rented at FMR levels would likely struggle to be cash-flow positive. A 2-bedroom unit rented at $3530 would be far below the market rate of $5424, leading to potential losses if the property were financed at market rates. The investment grade for this ZIP code would be considered low for Section 8-focused investors due to the high price-to-FMR ratio. Properties that do accept Section 8 vouchers are likely to be older or less desirable units, which may not appeal to the majority of the local population given the area's affluence. #### Specific Actionable Insights 1. **Focus on Lower-Rent Units**: Investors should focus on acquiring 0BR and 1BR units, as these are closer to the FMR levels and may offer better cash flow opportunities. The FMR for a 1BR unit is $3000, which is still below the market rate but might be more acceptable to landlords. 2. **Consider Renovation Projects**: If investing in 2BR or larger units, consider renovation projects that can bring down the overall cost of ownership. By reducing maintenance and repair expenses, investors can potentially make these units more financially viable at FMR levels. #### Bottom Line Based on the analysis, the recommendation for Section 8-focused investors in ZIP code 92691 is to **Skip** this market. The high price-to-FMR ratio and the tight rental market make it difficult to achieve positive cash flow, especially for larger units. While there may be some opportunities in smaller units, the overall environment is not conducive to profitable Section 8 investments.

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.