Section 8 Fair Market Rent (FMR) for ZIP 92701 - 2027

Investment Score for ZIP 92701

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	$2,420
1 Bedroom	$2,480
2 Bedrooms	$2,920
3 Bedrooms	$3,960
4 Bedrooms	$4,730
5 Bedrooms	$5,487
6 Bedrooms	$6,145
7 Bedrooms	$6,637
8 Bedrooms	$6,969

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	$2,480	$389,675	0.64%	D
2BR	$2,920	$544,898	0.54%	F
3BR	$3,960	$868,441	0.46%	F
4BR	$4,730	$976,552	0.48%	F
5BR	$5,487	$1,050,085	0.52%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 92701 (Santa Ana, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 92701 in Santa Ana, CA, is set by HUD for 2026 as follows: - 0BR: $2180 - 1BR: $2230 - 2BR: $2630 - 3BR: $3570 - 4BR: $4260 These figures represent the maximum amount that a Section 8 voucher holder can pay towards rent. However, it's important to note that the actual rents in the area far exceed these FMRs. For instance, the Zillow median price for a 2BR property is $546,015, which translates into a monthly rental cost significantly higher than the FMR. The price-to-FMR ratio for a 2BR unit is 17.3x, indicating that the actual rental costs are much higher than what is covered by the vouchers. This means that voucher holders face significant constraints in finding affordable housing. They would need to find landlords willing to accept the lower FMR rates, which could be challenging given the high demand and limited supply of rental units in the area. #### Affordability & Renter Profile ZIP code 92701 has a population of 47,818, with 72.3% of residents being renters. This indicates a strong rental market, where the majority of the population relies on renting rather than owning their homes. The occupancy rate stands at 94.9%, suggesting that the market is relatively tight, with few vacant units available. Given the median household income of $70,572, the affordability of housing becomes a critical issue. The FMR for a 2BR unit is $2630, which represents 44.7% of the median income. This suggests that even at the FMR rate, a substantial portion of the household income goes towards rent, leaving little room for other expenses. The high percentage of renters and the tight occupancy rate indicate that there is a significant demand for rental properties, particularly those that are affordable. However, the actual rental prices are likely to be higher than the FMR, making it difficult for many residents to find suitable housing without financial assistance. #### Investor Angle From an investor perspective, the key question is whether the ZIP code offers a cash-flow positive opportunity at the FMR rates. Given the high actual rental costs and the low FMR rates, it is unlikely that investors will find the ZIP code cash-flow positive if they are relying solely on FMR rates to cover their expenses. However, there might still be opportunities for investors who can negotiate slightly above the FMR but below the actual market rates. The investment grade for this ZIP code would be considered moderate due to the strong rental demand and the high occupancy rate. But, the challenge lies in finding properties that can be rented out at a price that covers the mortgage and operating costs while still being within the FMR limits. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should focus on smaller units such as 0BR or 1BR apartments. These units have lower FMR rates ($2180 and $2230 respectively), which might be closer to the actual rental costs for smaller units. Additionally, the demand for smaller units tends to be higher in densely populated areas like Santa Ana. 2. **Consider Multi-Family Properties**: Multi-family properties, especially those with multiple small units, can provide a better opportunity to balance the high actual rental costs with the lower FMR rates. By having a mix of unit sizes, investors can cater to different segments of the rental market and potentially achieve a more favorable cash flow. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 92701 would be to **Skip**. The high actual rental costs and the low FMR rates make it challenging to find properties that can generate a positive cash flow. While there is a strong rental market and high demand, the mismatch between actual rents and FMRs makes it difficult to operate profitably within the constraints of the Section 8 program. Investors looking to enter this market should consider alternative strategies or ZIP codes where the FMR is closer to the actual rental prices.

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.