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 | $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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,480 | $434,279 | 0.57% | F |
| 2BR | $2,920 | $842,894 | 0.35% | F |
| 3BR | $3,960 | $1,036,984 | 0.38% | F |
| 4BR | $4,730 | $1,148,770 | 0.41% | F |
| 5BR | $5,487 | $1,432,987 | 0.38% | F |
U.S. Census Bureau data (2024)
The dynamics of the ZIP 92706 real estate market in Santa Ana, CA, reveal a landscape where demand appears to be closely matching, if not slightly exceeding, supply. This inference is drawn from the snapshot of current market conditions, where the Fair Market Rent (FMR) stands at $2340 for the fiscal year 2024, while the market rent, as indicated by the Zillow Observed Rent Index (ZORI), is higher at $2,952. This suggests that rental prices are trending above what the government deems fair, indicative of strong tenant interest in the area.
A further clue lies in the low 0.2% price-cut share, which means that only a small fraction of homes are being discounted to attract buyers. This implies that sellers can maintain their asking prices without significant concessions, a sign of a competitive market where buyers are willing to meet or exceed the seller's expectations. The median home value of $1,034,789 also underscores the robustness of the market, showing that homes are valued at a high level, reflecting both the desirability of the location and the overall economic health of the area.
The 48.4% renter share in ZIP 92706 points to a substantial portion of the population preferring or needing to rent rather than own. This long-term trend suggests ongoing pressure on the rental market, as a nearly even split between renters and owners often leads to sustained demand for rental properties. For landlords and small-portfolio investors, this translates into a stable rental environment, with potential for steady occupancy rates and reasonable rental income.
In summary, the ZIP 92706 market shows signs of balanced but strong demand, with rental prices above the FMR and minimal need for price reductions in sales. The high median home value and significant renter share indicate a vibrant, desirable area with consistent pressure on housing, particularly in the rental sector. These factors make it an attractive investment opportunity for those looking to capitalize on the current real estate climate in Santa Ana, CA.
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.