Section 8 Fair Market Rent (FMR) for ZIP 92864 - 2027

FY 2027 Fair Market Rent Rates

The economics of Section 8 housing in ZIP code 92864, which encompasses parts of Santa Ana, Anaheim, and Irvine in Orange County, California, are defined by the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment, set at $2780 for fiscal year 2024. This SAFMR figure is specifically tailored for this ZIP code, reflecting local rental conditions.

In ZIP 92864, landlords can expect the Section 8 voucher program to cover a significant portion of the SAFMR, but not the entirety. The Housing Choice Voucher Program reimburses landlords based on the difference between the SAFMR and the tenant's contribution, which is typically 30% of their income. Utility allowances are also factored into the total reimbursement, though these vary depending on the tenant's household size and location.

To illustrate, if a tenant's monthly income is $1800, their contribution towards rent would be $540 (30% of $1800). The remaining amount up to the SAFMR of $2780 is covered by the voucher. In this case, the voucher would pay out $2240 ($2780 - $540).

Utility allowances add further complexity. For a two-bedroom unit, the allowance might range from $200 to $300 per month, depending on the household size and other factors. This allowance is not part of the tenant's direct payment but is included in the total reimbursement to the landlord.

Given the SAFMR of $2780 and assuming an average utility allowance of $250, the total reimbursement to a landlord could be approximately $2490 ($2240 + $250). This leaves a potential reimbursement gap or surplus, depending on the actual market rent for similar units in the area.

Since the local market rent data is currently unavailable, it's important to monitor market trends closely. If the market rent for a two-bedroom unit exceeds $2780, landlords will face a reimbursement gap, receiving less than the market rate. Conversely, if the market rent is below $2780, landlords may benefit from a surplus, where the voucher amount exceeds the typical market rent.

Landlords participating in the Section 8 program should calculate their expected net income by considering both the SAFMR and any utility allowances. This helps in understanding the economic impact of renting to tenants with vouchers in ZIP 92864.

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.