Section 8 Fair Market Rent (FMR) for ZIP 92822 - 2027

FY 2027 Fair Market Rent Rates

The economics of Section 8 housing in ZIP code 92822, which encompasses parts of Santa Ana, Anaheim, and Irvine in Orange County, California, can be complex but are essential for landlords and small-portfolio investors to understand. The SAFMR (Section 8 Area Median Rent) for a two-bedroom apartment in this ZIP code is set at $2780 for fiscal year 2024. This figure represents the maximum amount that the Housing Choice Voucher program will pay towards rent for such an apartment.

A crucial point to note is that this SAFMR is specific to ZIP code 92822, meaning it does not necessarily reflect the rates in other ZIP codes within the broader metropolitan or county areas. Landlords should be aware that the SAFMR is designed to cover the majority of rental units in the area, making it a relevant benchmark for pricing their properties.

In the voucher system, tenants are required to contribute a portion of their income towards the rent, typically 30% of their adjusted monthly income. For instance, if a tenant's adjusted monthly income is $1000, they would need to pay $300 toward the rent. The remainder of the rent is then covered by the government through the voucher program. However, the reimbursement is capped at the SAFMR of $2780. If the market rent exceeds this amount, the landlord will not receive additional payment beyond the SAFMR limit.

Beyond the base rent, utility allowances also play a role in the overall economics. These allowances are designed to help cover the costs of utilities such as electricity, water, and gas. The exact amount can vary based on the specific circumstances of the property and the tenant's usage, but it adds to the total compensation received by the landlord.

To illustrate, let's assume a two-bedroom apartment in ZIP 92822 is listed at $3000 per month. With the SAFMR at $2780, the government would pay up to $2780 minus the tenant's contribution. If the tenant contributes $300, the landlord would receive $2480 from the government plus any utility allowance. In this scenario, the landlord would have a reimbursement gap of $520 ($3000 - $2480).

Conversely, if the market rent is below the SAFMR, the landlord might see a surplus. For example, if the market rent is $2500, the government would still reimburse up to $2780 minus the tenant's contribution, potentially leading to a surplus if the tenant's share is lower than the difference between the market rent and SAFMR.

In ZIP 92822, landlords must balance their rental pricing against the SAFMR to ensure they do not leave money on the table nor incur unnecessary losses. Given the SAFMR of $2780, landlords should aim to price their two-bedroom units competitively while understanding the potential reimbursement gaps or surpluses based on the actual market rents.

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.