Section 8 Fair Market Rent (FMR) for ZIP 92842 - 2027

FY 2027 Fair Market Rent Rates

The ZIP code 92842 is located in Garden Grove, CA, a neighborhood primarily characterized by its high concentration of multi-family and single-family residential units. While specific demographic data for ZIP code 92842 is not available due to its classification as a PO Box ZIP Code, it is situated within ZIP code 92840, which offers insight into the area's characteristics.

In ZIP code 92840, approximately 45% of residents are renters, indicating a significant demand for rental properties. The median household income is around $75,000, reflecting a diverse economic profile. As for the median home value, it stands at approximately $700,000, suggesting a moderate to high-value housing market.

Moving into the realm of rent economics, the Fair Market Rent (FMR) for ZIP code 92842 in fiscal year 2024 is set at $2,780. This figure represents the benchmark for rental pricing under the Section 8 program. In comparison, market rents in the area tend to be slightly higher, with some units fetching close to $3,000 per month, depending on size and condition.

Considering the practical aspects of investment, Garden Grove's ZIP code 92842 is well-suited for both hands-off voucher operators and hands-on value-add buyers. For those who prefer a passive investment strategy, the steady demand for affordable housing and the established Section 8 program provide a reliable source of rental income. On the other hand, active investors looking to enhance property value through renovations or upgrades can capitalize on the neighborhood's potential for growth, given its proximity to popular places and its mix of owner-occupied and rental properties.

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.