Section 8 Fair Market Rent (FMR) for ZIP 92886 - 2027

Investment Score for ZIP 92886

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	$3,360
1 Bedroom	$3,400
2 Bedrooms	$3,980
3 Bedrooms	$5,410
4 Bedrooms	$6,460
5 Bedrooms	$7,494
6 Bedrooms	$8,393
7 Bedrooms	$9,064
8 Bedrooms	$9,517

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	$3,400	$417,981	0.81%	C
2BR	$3,980	$667,060	0.6%	F
3BR	$5,410	$1,151,922	0.47%	F
4BR	$6,460	$1,482,090	0.44%	F
5BR	$7,494	$2,282,612	0.33%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 92886 (Yorba Linda, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 92886 in Yorba Linda, California, for 2026 is set at $4,250 for a two-bedroom unit. This figure represents 33.2% of the median household income in the area, which is $153,397. The FMR for a three-bedroom unit is $5,770, and for a four-bedroom unit, it is $6,890. However, these figures are significantly lower than the actual rents being charged in the market. For instance, the Zillow median price for a two-bedroom home in the area is $670,064, which translates to a rental cost that would be much higher if the property were leased out. Given the high price-to-FMR ratio of 13.1x, voucher holders face significant constraints in finding affordable housing. They must locate units that are priced below or at the FMR levels, which can be challenging given the local rental market dynamics. #### Affordability & Renter Profile ZIP code 92886 has a relatively small percentage of renters at 16.9%, indicating that the majority of residents are homeowners. With a high median household income, the typical renter in this area likely has a strong financial background. However, the tight rental market, characterized by a high occupancy rate of 95.6%, suggests that there is limited availability of rental properties, making it a competitive environment for those seeking to rent. The high price-to-FMR ratio further underscores the challenge of affordability for renters, especially those relying on Section 8 vouchers. Given the low renter percentage and high occupancy rate, it is reasonable to infer that the rental market is undersupplied, leading to upward pressure on rental prices. #### Investor Angle From an investor perspective, the ZIP code 92886 presents a mixed picture when considering cash flow and investment grade based on FMRs. While the FMRs provide a benchmark for rental rates, they are substantially lower than what the market might bear. For example, a two-bedroom unit priced at $4,250 per month is only a fraction of the median home value ($670,064). This implies that landlords who rely solely on FMRs may struggle to cover their mortgage payments, maintenance costs, and other expenses associated with owning a rental property. Therefore, while the ZIP code offers potential for investment, the cash flow is likely to be negative unless the investor can find ways to offset the difference between the FMR and the actual market rent. The investment grade in this area would be considered low due to the high cost of acquiring properties and the limited ability to charge market rates under the Section 8 program. #### Specific Actionable Insights 1. **Target Lower-Rent Units**: Investors should focus on securing properties that are priced closer to the FMR levels. For instance, a one-bedroom unit priced at $3,610 or a zero-bedroom unit priced at $3,520 may offer better opportunities for cash flow compared to higher-priced units. This strategy aligns with the Section 8 voucher limits and ensures that the property remains affordable for eligible tenants. 2. **Consider Multi-Family Properties**: Single-family homes may be less viable due to the high price-to-FMR ratio. Instead, investors could explore multi-family properties where the overall cost is spread across multiple units. This approach can help mitigate the negative cash flow impact by leveraging economies of scale and potentially charging slightly higher rents for larger units while still adhering to FMR guidelines. #### Bottom Line Given the high price-to-FMR ratio and the tight rental market, the recommendation for Section 8-focused investors is to **Skip** ZIP code 92886. The financial constraints imposed by the FMR levels make it difficult to achieve positive cash flow, especially when considering the high acquisition costs of properties in this affluent area. Investors looking to enter the Section 8 market in Yorba Linda would likely face challenges in finding suitable properties and maintaining profitability. It would be more prudent to look for areas with a more favorable balance between FMRs and actual market rents.

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.