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 | $2,780 |
| 1 Bedroom | $2,820 |
| 2 Bedrooms | $3,300 |
| 3 Bedrooms | $4,480 |
| 4 Bedrooms | $5,360 |
| 5 Bedrooms | $6,218 |
| 6 Bedrooms | $6,964 |
| 7 Bedrooms | $7,521 |
| 8 Bedrooms | $7,897 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $3,300 | $590,983 | 0.56% | F |
| 3BR | $4,480 | $1,186,265 | 0.38% | F |
| 4BR | $5,360 | $1,638,585 | 0.33% | F |
| 5BR | $6,218 | $2,183,672 | 0.28% | F |
U.S. Census Bureau data (2024)
The analysis for the Section 8 program in ZIP code 92887, located in Yorba Linda, California, highlights a significant disparity between the Fair Market Rent (FMR) and the actual market rent. The FMR for ZIP 92887 in fiscal year 2024 is set at $2970, whereas the market rent, as measured by ZORI, stands at $3356. This means that landlords can expect a rental rate that is $386 higher than the FMR, representing an increase of approximately 13%.
In this context, it's important to understand the implications of this gap. With only 16.3% of residents being renters, competition for rental properties is relatively low compared to other areas. However, the median home value in Yorba Linda is quite high at $1,514,874, indicating a generally affluent neighborhood. Despite this, the median household income is $163,953, which suggests that many potential renters might find it challenging to afford market rents without assistance.
The Section 8 program aims to bridge this affordability gap by providing vouchers to eligible tenants. However, when the FMR is lower than the market rent, as is the case here, landlords must decide whether to accept the lower payment from voucher holders or seek out higher-paying tenants in the open market. Accepting Section 8 tenants means landlords will be paid at the FMR rate, which is $386 less than what the market dictates, or about 11.5% below the market rent.
This situation presents a trade-off for landlords and small-portfolio investors. While accepting Section 8 tenants ensures a steady, government-backed income stream, it also means foregoing the higher rents available in the open market. The decision to participate should be based on a careful assessment of the local rental market dynamics and the financial stability provided by the program.
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.