Location: Santa Ana-Anaheim-Irvine, CA | Metro: Santa Ana-Anaheim-Irvine, CA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $2,580 |
| 1 Bedroom | $2,610 |
| 2 Bedrooms | $3,060 |
| 3 Bedrooms | $4,160 |
| 4 Bedrooms | $4,970 |
| 5 Bedrooms | $5,765 |
| 6 Bedrooms | $6,457 |
| 7 Bedrooms | $6,974 |
| 8 Bedrooms | $7,323 |
The median sale price of a home in ZIP 92711 was $950K in August 2022, indicating a significant increase of 24.6% compared to the previous year. Given this context, let's address some common concerns a skeptical investor might have regarding investing in this area through the lens of Section 8 real estate.
Will Fair Market Rent (FMR) of $2780 cover the mortgage on a home in 92711?
The FMR of $2780 is set by HUD and reflects the average rent for a modest home in the area. However, the median home price of $950K suggests that typical mortgages will be higher, especially considering interest rates and down payments. Investors must ensure that their mortgage payments align with the FMR to avoid financial strain. The data does not provide specific mortgage figures, but it is crucial to perform a thorough calculation using current mortgage rates to determine feasibility.
Is there enough renter demand at 26%?
The 26% figure refers to the percentage of properties at risk of wildfire, not renter demand. To assess renter demand, we need to look at the rental market trends. The median sale price of $950K implies a high-value neighborhood, but without specific rental demand data, it's challenging to quantify the exact level of demand. However, the presence of 213 homes for sale and 15,683 rentals listed suggests a robust market, potentially supporting strong renter demand.
Will vouchers keep pace with market rents?
HUD adjusts FMR annually based on market conditions. With the median home price rising by 24.6%, it is reasonable to expect that HUD will also adjust the FMR accordingly. It is important to monitor these adjustments closely to ensure that the voucher amount remains sufficient to cover the rent. The data provided does not specify future adjustments, but historical patterns suggest regular updates to maintain parity with market rents.
In conclusion, while the data presents a clear picture of the rising home values and potential risks, it lacks specifics on mortgage costs and precise rental demand figures. Careful analysis and monitoring of these factors will be essential for any investor considering Section 8 properties in ZIP 92711.
Data Sources: FMR data from HUD (2027).
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.