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 | $3,100 |
| 1 Bedroom | $3,130 |
| 2 Bedrooms | $3,670 |
| 3 Bedrooms | $4,990 |
| 4 Bedrooms | $5,960 |
| 5 Bedrooms | $6,914 |
| 6 Bedrooms | $7,744 |
| 7 Bedrooms | $8,364 |
| 8 Bedrooms | $8,782 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $3,130 | $542,541 | 0.58% | F |
| 2BR | $3,670 | $696,618 | 0.53% | F |
| 3BR | $4,990 | $1,097,121 | 0.45% | F |
| 4BR | $5,960 | $1,413,913 | 0.42% | F |
| 5BR | $6,914 | $1,847,392 | 0.37% | F |
U.S. Census Bureau data (2024)
In analyzing the real estate market for ZIP code 92808 in Anaheim, CA, several key points emerge that could concern a landlord or small-portfolio investor. One major objection might be whether the Fair Market Rent (FMR) of $3340 for the fiscal year 2024 will adequately cover the mortgage on a property valued at $1,216,144. The FMR represents the maximum amount HUD will pay for low-income housing rental assistance, which is crucial for understanding the potential income stream. However, the FMR does not directly correlate to the mortgage payment on a high-value home, which can vary widely based on interest rates and loan terms. While the FMR provides a baseline for what the government considers a reasonable rent, it's important to note that private market rents may exceed this figure significantly.
A second objection revolves around the level of renter demand, currently standing at 26.8%. This percentage reflects the proportion of households that rent their homes. Despite this being below the national average, it still indicates a substantial number of renters in the area. For instance, a lower percentage does not necessarily mean a lack of demand; it could simply mean that homeownership is more prevalent. Moreover, the local economy, job market, and demographic trends play significant roles in sustaining renter demand. Without specific economic indicators, we cannot definitively state the strength of demand but can infer that a quarter of the population renting suggests a viable market for rental properties.
The final objection pertains to the ability of housing vouchers to keep up with market rents, which are reported at $3378. The challenge here is that voucher amounts are often set below market rates to ensure affordability for recipients. In ZIP 92808, the gap between the FMR and market rents is minimal, suggesting that voucher holders may find it relatively easier to secure housing compared to areas with higher disparities. However, landlords should be aware that voucher programs come with their own set of rules and requirements, which can sometimes complicate the leasing process. The good news is that the proximity of the FMR to market rents means that accepting vouchers can still be financially viable.
To summarize, while the FMR of $3340 may not directly cover the mortgage on a $1,216,144 home, it provides a benchmark for rental pricing. Renter demand at 26.8% is sufficient to support a rental market, though further economic analysis would provide a clearer picture. Lastly, housing vouchers are likely to remain competitive with market rents at $3378, making them a valuable option for landlords willing to navigate the associated regulations.
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.