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 | $3,430 |
| 1 Bedroom | $3,470 |
| 2 Bedrooms | $4,060 |
| 3 Bedrooms | $5,520 |
| 4 Bedrooms | $6,590 |
| 5 Bedrooms | $7,644 |
| 6 Bedrooms | $8,561 |
| 7 Bedrooms | $9,246 |
| 8 Bedrooms | $9,708 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $3,470 | $611,918 | 0.57% | F |
| 2BR | $4,060 | $861,161 | 0.47% | F |
| 3BR | $5,520 | $1,059,801 | 0.52% | F |
| 4BR | $6,590 | $1,649,904 | 0.4% | F |
| 5BR | $7,644 | $2,310,149 | 0.33% | F |
U.S. Census Bureau data (2024)
Ladera Ranch, CA (ZIP 92694) is situated within the Santa Ana-Anaheim-Irvine, CA HUD Metro FMR Area. Its Fair Market Rent (FMR) for FY 2024 is set at $3780, which is higher than the average market rent of $3,588. This indicates that the area is slightly above average in terms of rental costs compared to other ZIP codes within the same metro region.
The median home value in Ladera Ranch stands at $1,275,257, positioning it as a premium sub-market within the metro area. This figure is notably higher than the typical home values seen across the broader Santa Ana-Anaheim-Irvine, CA HUD Metro FMR Area, suggesting a higher-end residential market.
A key metric for landlords and small-portfolio investors is the renter share, which in Ladera Ranch is 25.2%. This percentage is indicative of a neighborhood where a significant portion of residents are renters rather than homeowners. However, the high median home value implies that this ZIP code is not a typical value pocket for Section 8 tenants, who generally seek more affordable housing options.
To further contextualize Ladera Ranch's position within the metro, let's compare its metrics with those of the overall area. The FMR being higher than the market rent suggests that properties here may be slightly overpriced relative to what tenants might expect to pay. The premium sub-market status due to high home values means that landlords in this area can charge higher rents, reflecting the local real estate market dynamics.
The divergence between the high renter share and the premium home values does not signal a traditional Section 8 sweet spot. Instead, it suggests that while there is a substantial number of renters, they are likely renting due to the high cost of homeownership rather than seeking low-cost housing solutions. For investors, this means potential opportunities in the higher-end rental market, but also awareness of the competitive landscape and the need for properties that justify the higher rental rates.
In summary, ZIP 92694 (Ladera Ranch, CA) represents a premium sub-market within the Santa Ana-Anaheim-Irvine, CA HUD Metro FMR Area, with higher-than-average rental costs and significantly elevated home values. The 25.2% renter share highlights a strong rental demand, yet the premium nature of the market indicates that this is not an area typically associated with Section 8 value pockets.
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.