Section 8 Fair Market Rent (FMR) for ZIP 92780 - 2027

Investment Score for ZIP 92780

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	$2,530
1 Bedroom	$2,560
2 Bedrooms	$3,000
3 Bedrooms	$4,080
4 Bedrooms	$4,870
5 Bedrooms	$5,649
6 Bedrooms	$6,327
7 Bedrooms	$6,833
8 Bedrooms	$7,175

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	$2,560	$458,516	0.56%	F
2BR	$3,000	$604,763	0.5%	F
3BR	$4,080	$1,113,536	0.37%	F
4BR	$4,870	$1,313,118	0.37%	F
5BR	$5,649	$1,502,614	0.38%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 92780 (Tustin, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 92780 is set by HUD for the year 2026. For a two-bedroom unit, the FMR is $3090, which represents 36.7% of the median household income in Tustin. This FMR is significantly lower than the actual rental rates in the area. The Zillow median price for a two-bedroom unit is $605,774, indicating that the average rent for such units would be much higher than the FMR. In fact, the price-to-FMR ratio is 16.3x, meaning that the actual rental prices are approximately 16 times higher than what is considered fair market rent by HUD. This creates a significant constraint for voucher holders, who may find it challenging to secure housing within their budget. A tenant with a Section 8 voucher would likely struggle to find a two-bedroom unit renting for $3090 per month, given the high cost of living in Tustin. The gap between FMR and actual rents is substantial, making it difficult for voucher recipients to afford decent housing without additional financial support. #### Affordability & Renter Profile ZIP code 92780 has a population of 54,374, with 55.9% of residents being renters. This indicates a strong demand for rental properties in the area. The occupancy rate stands at 96.4%, suggesting that the market is relatively tight, with few vacant units available. Given the high percentage of renters and the low vacancy rate, there is a clear indication that the rental market is competitive and that tenants are willing to pay premium prices to secure housing. The median household income in Tustin is $101,017, which places it in a higher-income bracket compared to many other areas in the United States. However, the high rental costs mean that even middle-class residents might face affordability challenges. The 36.7% of median income required for a two-bedroom unit under the FMR suggests that a significant portion of the population could be struggling to find affordable housing. This tight market makes it particularly challenging for low-income households to find suitable accommodation. #### Investor Angle From an investor perspective, the ZIP code 92780 presents a mixed picture. While the overall rental market is robust and competitive, the FMR set by HUD is substantially lower than the actual rental prices. An investor looking to operate within the FMR guidelines would need to ensure that they can still achieve positive cash flow. Given the Zillow median price of $605,774 for a two-bedroom unit, the typical rental price would be around $2,500-$3,000 per month, based on common rental yield expectations. However, the FMR for a two-bedroom unit is only $3090, which is well below the market rate. Therefore, an investor relying solely on FMR would likely face negative cash flow, unless they can leverage other subsidies or programs to bridge the gap. The investment grade for this ZIP code would be considered moderate to low for Section 8-focused investors due to the high cost of acquiring properties and the limited ability to charge market rates. Investors would need to carefully evaluate their acquisition costs and operating expenses to determine if they can sustain operations within the FMR limits. #### Specific Actionable Insights 1. **Target Smaller Units**: Given the high cost-to-rent ratio, investors should consider focusing on smaller units like one-bedroom apartments. The FMR for a one-bedroom unit is $2620, which is closer to the actual rental prices in the area. This could provide a better opportunity for achieving positive cash flow while still serving the needs of low-income households. 2. **Seek Additional Subsidies**: To make investments in larger units financially viable, investors should explore additional subsidy programs beyond Section 8 vouchers. For instance, the Housing Choice Voucher Program often allows for a combination of federal and local subsidies, which can help cover the gap between FMR and market rates. 3. **Consider Long-Term Appreciation**: Although the short-term cash flow might be challenging, the long-term appreciation potential in Tustin could be attractive. With a median home value of $605,774, properties in this ZIP code are likely to appreciate over time, providing a solid return on investment for those willing to hold onto their assets for several years. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 92780 is to **Skip**. The high cost-to-rent ratio and the tight rental market make it difficult to achieve positive cash flow within the FMR guidelines. Additionally, the limited availability of larger units at FMR prices means that there is a significant risk of not being able to fully utilize the vouchers. Investors should look for areas with a more favorable balance between FMR and actual rental prices, or consider alternative investment strategies that can leverage additional subsidies to bridge the gap.

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.