Section 8 Fair Market Rent (FMR) for ZIP 92707 - 2027

Investment Score for ZIP 92707

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	$385,172	0.64%	D
2BR	$2,920	$737,966	0.4%	F
3BR	$3,960	$846,011	0.47%	F
4BR	$4,730	$980,581	0.48%	F
5BR	$5,487	$1,060,758	0.52%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 92707 (Santa Ana, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 92707, as of 2026, is set at $2900 for a two-bedroom unit. However, the actual median rent for a two-bedroom unit on Zillow is $731,044, which translates to a price-to-FMR ratio of 21.0x. This means that the actual market rent is significantly higher than the FMR, creating a substantial gap between what voucher holders can afford and what landlords are charging. For instance, a three-bedroom unit has an FMR of $3940, but the actual market rent could be much higher, making it challenging for voucher holders to find suitable housing. #### Affordability & Renter Profile ZIP code 92707 has a population of 58,695, with 51.1% of residents being renters. The occupancy rate stands at 96.8%, indicating a high demand for rental properties. Given the median household income of $105,168, the affordability of housing becomes a critical issue, especially for those relying on Section 8 vouchers. A two-bedroom unit at the FMR of $2900 represents 33.1% of the median income, suggesting that while it is affordable for some, many residents may struggle to find housing within their budget. The tight market conditions make it even harder for low-income renters to secure housing. #### Investor Angle From an investor’s perspective, the ZIP code 92707 presents a mixed picture. The FMR for a two-bedroom unit is $2900, which is far below the actual median rent of $731,044. While the FMR might seem attractive for cash flow, the reality is that most units in this area are priced well above the FMR. Therefore, investors who rely solely on Section 8 vouchers will likely face challenges in achieving positive cash flow. The high price-to-FMR ratio of 21.0x indicates that the market is overpriced relative to the FMR, making it difficult for voucher holders to find affordable housing. In terms of investment grade, the ZIP code 92707 would be considered a speculative investment due to the significant disparity between the FMR and market rents. Investors should carefully consider the risk of relying on Section 8 vouchers in such a high-cost market. #### Specific Actionable Insights 1. **Focus on Units Below FMR**: Investors should seek out properties where the rent is below the FMR, particularly for two-bedroom units. For example, a property renting for $2900 or less would be ideal for Section 8 voucher holders, ensuring compliance with the program and potentially better cash flow. 2. **Consider Smaller Units**: Given the high price-to-FMR ratio, smaller units like one-bedroom apartments may offer better opportunities for positive cash flow. The FMR for a one-bedroom unit is $2460, which is lower than the FMR for a two-bedroom unit. If an investor can find a one-bedroom unit renting for around $2460, they may have a better chance of attracting voucher holders and maintaining profitability. #### Bottom Line For investors focused on Section 8 vouchers, the ZIP code 92707 is not recommended for buying or holding properties. The high price-to-FMR ratio and tight market conditions make it challenging to find properties that are both affordable for voucher holders and profitable for investors. The speculative nature of the investment grade suggests that the risks outweigh the potential benefits in this ZIP code. --- This analysis provides a detailed look into the dynamics of the rental market in ZIP code 92707, focusing on the challenges faced by Section 8 voucher holders and the implications for investors. The data clearly shows a mismatch between the FMR and actual market rents, making it difficult for low-income renters to find affordable housing and for investors to achieve positive cash flow through Section 8 vouchers.

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.