Section 8 Fair Market Rent (FMR) for ZIP 92692 - 2027

Investment Score for ZIP 92692

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	$3,070
1 Bedroom	$3,110
2 Bedrooms	$3,640
3 Bedrooms	$4,940
4 Bedrooms	$5,910
5 Bedrooms	$6,856
6 Bedrooms	$7,679
7 Bedrooms	$8,293
8 Bedrooms	$8,708

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	$3,110	$561,439	0.55%	F
2BR	$3,640	$842,050	0.43%	F
3BR	$4,940	$1,144,901	0.43%	F
4BR	$5,910	$1,506,492	0.39%	F
5BR	$6,856	$1,837,064	0.37%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 92692 (Mission Viejo, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 92692 is set by HUD for 2026 as follows: - 0BR: $3170 - 1BR: $3250 - 2BR: $3830 (which is 35.0% of the median household income) - 3BR: $5200 - 4BR: $6210 These figures represent the maximum amount that a Section 8 voucher holder can pay towards rent. However, the actual rental market in Mission Viejo is significantly higher. The Zillow median price for a 2BR unit is $846,234, which translates to a monthly mortgage payment of approximately $4,000 assuming a 30-year fixed-rate mortgage at a 4% interest rate. This means that the price-to-FMR ratio for a 2BR unit is 18.4x, indicating that the actual market rents far exceed the FMRs set by HUD. Voucher holders face significant constraints in finding affordable housing. For example, a 2BR unit priced at $3830 per month is only 35.0% of the median household income, making it challenging for low-income residents to find suitable accommodation without assistance. Additionally, landlords have little incentive to accept vouchers given the disparity between market rents and FMRs. #### Affordability & Renter Profile Mission Viejo has a population of 47,022, with 24.9% of households being renters. The occupancy rate is 95.6%, suggesting a tight rental market with limited availability. Given the high median household income of $131,175, most residents can afford market rates, but the 24.9% who are renters often struggle to find affordable options. The high price-to-FMR ratio indicates that the market is extremely tight for those relying on Section 8 vouchers. The median rent for a 2BR unit is well above the FMR, making it difficult for voucher holders to secure housing. This tight market also implies that there is likely a shortage of affordable units, leading to increased competition among renters and potentially higher rents. #### Investor Angle From an investor perspective, the ZIP code 92692 is not cash-flow positive at the FMR levels due to the significant gap between FMR and market rents. For instance, a 2BR unit with a Zillow median price of $846,234 would have a monthly mortgage payment of around $4,000, while the FMR is only $3830. This leaves a shortfall of $270 per month before accounting for other expenses such as property taxes, insurance, and maintenance. Given these dynamics, the investment grade for properties in this ZIP code is relatively low for Section 8-focused investors. The primary challenge is the inability to cover mortgage payments and other costs with the FMR alone, leading to potential financial losses. Investors looking to participate in the Section 8 program would need to consider alternative strategies, such as targeting lower-priced units or seeking additional subsidies. #### Specific Actionable Insights 1. **Target Lower-Priced Units**: Investors should focus on acquiring properties that are closer to the FMR levels. For example, a 1BR unit priced at $3250 per month would be more feasible for Section 8 tenants. This could involve purchasing older homes or smaller units that are less expensive. 2. **Seek Additional Subsidies**: Given the high cost of living in Mission Viejo, investors might explore additional government programs or local subsidies that can help bridge the gap between FMR and market rents. This could include state-level housing assistance programs or partnerships with non-profit organizations that provide supplementary funding. 3. **Consider Long-Term Appreciation**: While the short-term cash flow may be negative, investors should evaluate the long-term appreciation potential of properties in Mission Viejo. With a median household income of $131,175 and a strong demand for rentals, properties are likely to appreciate over time, providing a solid return on investment in the future. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 92692 is to **Skip**. The high price-to-FMR ratio and the tight rental market make it challenging to achieve positive cash flow using Section 8 vouchers alone. Investors should look for areas with more favorable ratios or consider diversifying their investment strategy to include other forms of rental assistance or subsidies.

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.