Section 8 Fair Market Rent (FMR) for ZIP 92806 - 2027

Investment Score for ZIP 92806

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	$2,680
1 Bedroom	$2,720
2 Bedrooms	$3,180
3 Bedrooms	$4,320
4 Bedrooms	$5,160
5 Bedrooms	$5,986
6 Bedrooms	$6,704
7 Bedrooms	$7,240
8 Bedrooms	$7,602

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
2BR	$3,180	$581,456	0.55%	F
3BR	$4,320	$963,951	0.45%	F
4BR	$5,160	$1,052,336	0.49%	F
5BR	$5,986	$1,149,750	0.52%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 92806 (Anaheim, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 92806 is set by HUD to ensure that low-income households can afford housing. For 2026, the FMRs are as follows: - 0BR: $2690 - 1BR: $2750 - 2BR: $3240 (which is 40.0% of the median household income) - 3BR: $4400 - 4BR: $5250 However, the actual rental market in Anaheim, particularly in ZIP 92806, is significantly higher. The Zillow median price for a 2-bedroom apartment is $579,369, which translates to a monthly rent of approximately $4828 based on typical mortgage payments. This means the actual rent is about 14.9 times the FMR for a 2BR unit, indicating that the FMR is far below the market rate. This disparity creates significant constraints for voucher holders. They would find it challenging to secure housing within the FMR limits, especially for larger units. For example, a 4BR unit with an FMR of $5250 would likely be unaffordable in the actual market, where rents could easily exceed $7000 per month. #### Affordability & Renter Profile ZIP code 92806 has a population of 41,003, with 59.2% of residents being renters. The occupancy rate stands at 95.5%, suggesting a tight rental market with limited availability. Given that the median household income is $97,265, the high rent-to-income ratio indicates that the area is generally expensive for renters. The affordability gap is stark, with the FMR for a 2BR unit being only $3240, while the actual market rent is around $4828. This suggests that the majority of renters in this ZIP code must pay well above the FMR to secure housing. The high rent-to-income ratio also implies that the market is competitive, with many renters potentially facing challenges in finding affordable housing. #### Investor Angle From an investor’s perspective, the ZIP code 92806 presents a mixed picture. While the actual rental market is robust, the cash flow potential for Section 8 properties is constrained by the lower FMRs. To determine if the ZIP is cash-flow positive at FMR, we need to consider the typical operating expenses and mortgage payments. Assuming a 2BR unit with a Zillow median price of $579,369, the monthly mortgage payment (based on a 30-year fixed-rate mortgage at 5%) would be approximately $2996. Adding typical operating expenses such as property taxes, insurance, and maintenance, the total cost could easily exceed $3500 per month. This is significantly higher than the FMR of $3240, making it difficult for investors to break even or generate positive cash flow solely through Section 8 vouchers. Given these dynamics, the investment grade for Section 8 properties in 92806 would be considered low due to the financial constraints and the difficulty in securing tenants willing to pay the FMR. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Investors should focus on smaller units like 0BR and 1BR apartments, which have FMRs of $2690 and $2750 respectively. These units are more likely to be rented out at the FMR, given the high demand for affordable housing in the area. 2. **Consider Alternative Rental Programs**: Given the high rent-to-income ratio, investors might want to explore alternative rental assistance programs that offer higher subsidies than Section 8. This could include state-specific programs or other federal initiatives that provide better financial support to tenants. 3. **Develop Value-Added Strategies**: Investors could consider value-added strategies such as renovating older properties to meet modern standards. This could help in attracting tenants who are willing to pay closer to the FMR, thereby improving the overall financial viability of the investment. #### Bottom Line Based on the analysis, the recommendation for Section 8-focused investors in ZIP code 92806 is to **skip** this market. The significant gap between the FMR and actual market rents makes it financially challenging to operate properties profitably under the Section 8 program. Investors should look for areas with a more favorable rent-to-income ratio or consider alternative rental assistance programs that offer higher subsidies.

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.