Location: Santa Ana-Anaheim-Irvine, CA | Metro: Santa Ana-Anaheim-Irvine, CA HUD Metro FMR Area
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $3,170 |
| 1 Bedroom | $3,210 |
| 2 Bedrooms | $3,760 |
| 3 Bedrooms | $5,110 |
| 4 Bedrooms | $6,110 |
| 5 Bedrooms | $7,088 |
| 6 Bedrooms | $7,939 |
| 7 Bedrooms | $8,574 |
| 8 Bedrooms | $9,003 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $3,760 | $705,073 | 0.53% | F |
| 3BR | $5,110 | $1,027,177 | 0.5% | F |
| 4BR | $6,110 | $1,316,880 | 0.46% | F |
| 5BR | $7,088 | $1,638,239 | 0.43% | F |
U.S. Census Bureau data (2024)
To determine if a landlord should invest in ZIP 92807 (Anaheim, CA) for Section 8 properties, follow this decision tree based on the provided data:
1) Does the Fair Market Rent (FMR) of $3,120 cover the debt service on a property valued at $1,158,741?
No. The FMR of $3,120 is insufficient to clear the debt service on a property worth $1,158,741. To further analyze, consider that the annual FMR would be $37,440 ($3,120 x 12 months). This amount does not sufficiently cover the typical mortgage payments, taxes, insurance, and maintenance costs associated with such a high-value property.
2) Is the market rent ($2,793 ZORI) above, at, or below the FMR?
The market rent is below the FMR. At $2,793, the ZORI (Zillow Observed Rent Index) is lower than the FMR of $3,120. This indicates that the market rent is less than what the government will pay under the Section 8 program.
3) Are 20.3% renters and N/A-day days on market (DOM) enough demand for Section 8?
It depends. With 20.3% of the population being renters, there is a moderate level of rental demand in ZIP 92807. However, the lack of data on days on market (DOM) makes it challenging to assess the speed at which rental units are filled. This uncertainty can affect the reliability of finding and retaining tenants. Additionally, the percentage of renters does not provide insight into the proportion who might qualify for Section 8 housing assistance.
If you decide to proceed despite the FMR not covering the debt service, ensure that your investment strategy accounts for the potential financial shortfall. Consider properties with lower acquisition costs where the FMR can cover the necessary expenses. Alternatively, look into areas with higher FMRs or stronger rental demand metrics.
In conclusion, the current data suggests that ZIP 92807 may not be an optimal location for Section 8 investments due to the low FMR relative to property values and the unknown speed of filling vacancies. However, if other factors such as location desirability or potential for property appreciation are compelling, then it could still be considered with careful planning.
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.