Section 8 Fair Market Rent (FMR) for ZIP 92708 - 2027

Investment Score for ZIP 92708

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	$2,770
1 Bedroom	$2,800
2 Bedrooms	$3,280
3 Bedrooms	$4,460
4 Bedrooms	$5,330
5 Bedrooms	$6,183
6 Bedrooms	$6,925
7 Bedrooms	$7,479
8 Bedrooms	$7,853

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	$2,800	$466,286	0.6%	D
2BR	$3,280	$705,377	0.46%	F
3BR	$4,460	$1,260,886	0.35%	F
4BR	$5,330	$1,460,638	0.36%	F
5BR	$6,183	$1,672,248	0.37%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 92708 (Fountain Valley, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 92708 in Fountain Valley, California, is set by HUD for 2026 as follows: - 0BR: $2850 - 1BR: $2920 - 2BR: $3440 - 3BR: $4670 - 4BR: $5580 These figures represent the maximum amount that a Section 8 voucher holder can pay towards rent. However, comparing these FMRs to actual market rents reveals significant constraints for voucher holders. For instance, the Zillow median price for a 2BR property in 92708 is $700,170. This implies that the rental market is highly competitive and expensive. The price-to-FMR ratio for a 2BR unit is approximately 17.0x, meaning that the typical market rent for a 2BR property is around $58,480 annually ($700,170/17.0). This is far above the $3440 monthly limit imposed by the Section 8 program, which is only 35.8% of the median household income in the area. Given the high market rents, Section 8 voucher holders face severe limitations in finding suitable housing. They must seek out properties where landlords are willing to accept the lower FMR rates, which may be scarce in such a competitive market. #### Affordability & Renter Profile ZIP code 92708 has a population of 56,258, with 35.2% being renters. The occupancy rate is quite high at 97.7%, indicating a tight rental market with limited availability. The median household income in the area is $115,237, suggesting that many residents have higher-than-average incomes, which contributes to the high demand and prices in the rental market. The 2BR FMR of $3440 represents a significant portion of the median income, making it challenging for low-income households to find affordable housing without assistance. Given the high median home value and the fact that the FMR is only a fraction of the typical market rent, the rental market is likely dominated by higher-income individuals who can afford the premium rents. This makes it particularly difficult for those relying on Section 8 vouchers to secure housing. #### Investor Angle From an investor perspective, the ZIP code 92708 presents a mixed picture. The FMR for a 2BR unit is $3440, while the typical market rent is much higher. To determine if this ZIP is cash-flow positive at FMR, we need to consider the potential rental income versus the costs of owning and managing the property. Assuming a conservative estimate of the cost of ownership (including mortgage payments, property taxes, insurance, maintenance, and management fees), it is unlikely that a 2BR property rented at $3440 per month would generate sufficient cash flow to cover all expenses. In a market where the average 2BR rent is significantly higher, landlords might be reluctant to accept the lower FMR rates, leading to a limited pool of available Section 8 units. In terms of investment grade, the high price-to-FMR ratio suggests that the market is not favorable for investors seeking to maximize returns through Section 8 rentals. The tight rental market and high demand for premium-priced units mean that there is little incentive for landlords to participate in the Section 8 program unless they are specifically targeting this demographic. #### Specific Actionable Insights 1. **Target Lower-Income Housing Areas**: Investors should focus on areas within 92708 that have a higher concentration of lower-income housing. These areas might offer better opportunities for cash flow at FMR rates. For example, neighborhoods near public transportation hubs or industrial zones might have more affordable options. 2. **Consider Smaller Units**: Given the high price-to-FMR ratio, smaller units (like 0BR or 1BR) might be more attractive to Section 8 voucher holders. The FMR for a 0BR unit is $2850, and for a 1BR unit, it is $2920. While these rates are still a small fraction of the typical market rent, they might provide better chances for securing tenants due to the scarcity of affordable options. 3. **Engage with Local Community Programs**: Investors could partner with local community programs that support low-income families. Such partnerships might help in attracting tenants who are eligible for Section 8 vouchers and navigating the complexities of the program. #### Bottom Line For Section 8-focused investors, the ZIP code 92708 is not recommended for buying or investing due to the high price-to-FMR ratio and the tight rental market. The high median household income and occupancy rate indicate that the area is primarily suited for higher-income renters. Therefore, the recommendation is to **skip** this ZIP code for Section 8 investments and instead look for areas with more affordable housing options and a larger percentage of low-income renters.

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.