Section 8 Fair Market Rent (FMR) for ZIP 92843 - 2027

Investment Score for ZIP 92843

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	$2,420
1 Bedroom	$2,480
2 Bedrooms	$2,920
3 Bedrooms	$3,960
4 Bedrooms	$4,730
5 Bedrooms	$5,487
6 Bedrooms	$6,145
7 Bedrooms	$6,637
8 Bedrooms	$6,969

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
1BR	$2,480	$433,681	0.57%	F
2BR	$2,920	$657,633	0.44%	F
3BR	$3,960	$968,793	0.41%	F
4BR	$4,730	$1,056,830	0.45%	F
5BR	$5,487	$1,222,794	0.45%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 92843 (Garden Grove, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 92843, as set by HUD for 2026, is $2640 for a two-bedroom apartment. This figure represents 38.9% of the median household income in Garden Grove, which stands at $81,446. However, the actual rental market in Garden Grove is significantly higher, with the Zillow median price for a two-bedroom apartment being $655,153. The price-to-FMR ratio is an astounding 20.7x, indicating that the actual rent prices far exceed the FMR. For instance, if we assume a typical rental price of $2640 per month based on the FMR, the actual rent could be around $54,912 per year ($2640 * 20.7). This means that Section 8 voucher holders face significant constraints in finding affordable housing. The FMR is designed to reflect what is considered reasonable and fair rent, but in Garden Grove, it falls well short of the actual market rates. As a result, voucher holders may struggle to find landlords willing to accept their vouchers due to the discrepancy between the FMR and the actual rent prices. #### Affordability & Renter Profile Garden Grove has a population of 46,414, with 52.9% of residents being renters. This high percentage suggests a strong demand for rental properties in the area. The occupancy rate of 96.6% further underscores that the rental market is robust and nearly fully utilized. Given the median household income of $81,446, the average renter would need to spend approximately 38.9% of their income on a two-bedroom apartment according to the FMR. In reality, they would likely be spending much more, given the actual rental prices. The high rent-to-income ratio and the significant disparity between FMR and actual rent prices indicate that the market is tight. Many renters are likely paying more than they can comfortably afford, especially those relying on Section 8 vouchers. The local economy must support these high rents, suggesting a mix of middle-class and possibly higher-income earners who can afford the inflated rental costs. #### Investor Angle From an investor's perspective, the ZIP code 92843 presents a challenging scenario when focusing solely on Section 8 vouchers. The FMR for a two-bedroom unit is $2640, while the actual market rent is much higher. If an investor were to purchase a property at the Zillow median price of $655,153 and rent it out at the FMR, they would be operating at a substantial loss. To illustrate, let’s consider a two-bedroom apartment purchased at the Zillow median price. Assuming a conservative annual appreciation rate of 3%, the mortgage payment, property taxes, insurance, and maintenance costs would likely exceed the $2640 monthly FMR. Even if the property were rented out at the actual market rate of around $54,912 per year, the high purchase price would still make it difficult to achieve positive cash flow. Given the high price-to-FMR ratio, the investment grade for Section 8-focused properties in this ZIP code would be low. Investors should carefully evaluate whether they can find properties below the median price or in lower rent categories that might offer better cash flow opportunities. #### Specific Actionable Insights 1. **Focus on Lower-Rent Properties**: Instead of targeting two-bedroom units, investors might want to focus on one-bedroom or studio apartments where the FMR is lower. For example, the FMR for a one-bedroom unit is $2240, which is still only 27.5% of the median household income. This could provide a better chance of achieving positive cash flow. 2. **Consider Location-Specific Opportunities**: Within ZIP code 92843, there may be pockets where rental prices are closer to the FMR. Investors should conduct thorough research to identify areas with lower rents and potentially higher vacancy rates, which could offer more favorable conditions for Section 8 tenants. 3. **Evaluate Non-Residential Investments**: Given the tightness of the residential rental market, investors might want to explore non-residential investments such as commercial real estate or multi-family complexes that cater to a broader range of income levels. These options could provide more stable returns and less reliance on government subsidies. #### Bottom Line For Section 8-focused investors, the ZIP code 92843 (Garden Grove, CA) is a challenging market due to the high price-to-FMR ratio and the tight rental environment. The bottom line recommendation is to **skip** this ZIP code unless you can find properties significantly below the median price or in lower rent categories. The current market dynamics suggest that positive cash flow will be difficult to achieve with the existing FMR guidelines. ### Conclusion In summary, the high cost of living in Garden Grove, coupled with the significant gap between FMR and actual rents, makes it a tough market for Section 8 voucher holders and investors alike. The ZIP code is characterized by a strong demand for rentals and nearly full occupancy, which drives up prices beyond the FMR. Therefore, investors looking to capitalize on Section 8 vouchers should carefully weigh the risks and consider alternative strategies or locations that offer more favorable conditions.

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.