Section 8 Fair Market Rent (FMR) for ZIP 92823 - 2027

Location: Santa Ana-Anaheim-Irvine, CA | Metro: Santa Ana-Anaheim-Irvine, CA HUD Metro FMR Area

Investment Score for ZIP 92823

Monthly Rent (2BR)

$4,380

Median Price (2BR)

$940,661

1% Rule

0.47%

Annual Yield

5.59%

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	$3,700
1 Bedroom	$3,740
2 Bedrooms	$4,380
3 Bedrooms	$5,950
4 Bedrooms	$7,110
5 Bedrooms	$8,248
6 Bedrooms	$9,238
7 Bedrooms	$9,977
8 Bedrooms	$10,476

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	$4,380	$940,661	0.47%	F
3BR	$5,950	$1,073,239	0.55%	F
4BR	$7,110	$1,399,041	0.51%	F
5BR	$8,248	$1,802,512	0.46%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

5,846

Median Household Income

$169,900

Housing Units

2,239

Renter Percentage

24.4%

Occupancy Rate

93.0%

Renter Occupied

508

To determine if a landlord should invest in ZIP 92823 (Brea, CA) for Section 8 properties, follow these steps:

Step 1: Does the Fair Market Rent (FMR) of $4,170 cover the debt service on a $1,296,936 property?

Yes. The FMR is set to ensure that rental income can cover the mortgage and other expenses associated with property ownership. At $4,170 per month, this amount is designed to be sufficient for a property valued at $1,296,936, assuming typical financing terms and costs.

Step 2: How does the market rent of $3,501 compare to the FMR?

Market Rent Below FMR. The Census ACS data indicates that the average market rent in Brea is $3,501, which is below the FMR of $4,170. This suggests that Section 8 tenants can pay a higher rent than what the market typically demands, potentially providing a buffer against financial risk.

Step 3: Is there enough demand with 24.4% of residents being renters and an unknown number of days on the market (DOM)?

It Depends. With 24.4% of residents being renters, there is a significant portion of the population that relies on renting, which could indicate a steady demand for rental properties. However, the lack of specific Days on Market (DOM) data makes it challenging to assess how quickly properties are rented out. Without knowing the DOM, landlords cannot fully evaluate the liquidity of their investment.

If the answer to Step 1 is yes, and the market rent is below the FMR as in Step 2, then the next critical factor is the demand for rentals. In Brea, the 24.4% of residents who are renters suggest a viable market, but the absence of DOM data introduces uncertainty. Landlords should seek additional local market analysis to understand how fast rental units are typically filled. This will help in making an informed decision about the potential returns and risks associated with investing in Section 8 properties in Brea.

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.