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 | $2,850 |
| 1 Bedroom | $2,890 |
| 2 Bedrooms | $3,400 |
| 3 Bedrooms | $4,610 |
| 4 Bedrooms | $5,500 |
| 5 Bedrooms | $6,380 |
| 6 Bedrooms | $7,146 |
| 7 Bedrooms | $7,718 |
| 8 Bedrooms | $8,104 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $3,400 | $705,137 | 0.48% | F |
| 3BR | $4,610 | $1,081,600 | 0.43% | F |
| 4BR | $5,500 | $1,159,921 | 0.47% | F |
| 5BR | $6,380 | $1,270,367 | 0.5% | F |
U.S. Census Bureau data (2024)
The median income in ZIP 92845, Garden Grove, CA, stands at $136,485. This figure places affordability of housing into perspective when considering the market rate rental price of $2,608, as per the Census ACS data. A household earning the median income would find it challenging to allocate a significant portion of their earnings towards rent without compromising other essential expenses.
When comparing the market rate to the Fair Market Rent (FMR) standard set at $3,270 for zip code 92845 in fiscal year 2024, it becomes evident that the FMR is higher than the actual market rate. This suggests that while the FMR aims to cover the average rent in the area, it may overestimate the typical cost faced by renters. The discrepancy between the FMR and the actual market rate could indicate a potential advantage for landlords who accept vouchers, as they might receive slightly above-market payments.
Garden Grove has a relatively low percentage of renters at 17.9%, with a total population of 16,143. This means that the competition among landlords for tenants is likely to be moderate, given the smaller pool of potential renters compared to areas with higher percentages of renters. However, the affordability gap between median income and both the market rate and FMR highlights the importance of understanding the financial capabilities of prospective tenants.
Landlords in ZIP 92845 should consider the benefits of accepting Section 8 vouchers. Although the voucher payment may exceed the current market rate, it ensures a steady stream of income and reduces the risk of non-payment. On the other hand, relying solely on cash-paying tenants requires a keen assessment of the local economic conditions and the ability to attract households willing to pay the market rate.
The takeaway for landlords is to weigh the advantages of voucher versus cash-pay strategies carefully. Accepting vouchers can provide financial stability and access to a segment of the population that might otherwise struggle to find affordable housing. Meanwhile, focusing on cash-paying tenants can potentially yield higher returns if the market rate continues to rise, but it comes with greater risk and competition.
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.