Section 8 Fair Market Rent (FMR) for ZIP 90001 - 2027

Investment Score for ZIP 90001

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	$1,690
1 Bedroom	$1,890
2 Bedrooms	$2,330
3 Bedrooms	$2,960
4 Bedrooms	$3,310
5 Bedrooms	$3,840
6 Bedrooms	$4,301
7 Bedrooms	$4,645
8 Bedrooms	$4,877

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,890	$466,610	0.41%	F
2BR	$2,330	$544,418	0.43%	F
3BR	$2,960	$612,100	0.48%	F
4BR	$3,310	$666,467	0.5%	F
5BR	$3,840	$762,799	0.5%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 90001 (Florence-Graham, CA) #### Section 8 Voucher Dynamics In ZIP code 90001, the Fair Market Rent (FMR) for a two-bedroom apartment is set at $2,070 per month for 2026. However, the Zillow median price for a two-bedroom rental in this area is significantly higher at $542,415, which translates to a monthly rent that would be approximately $21.8 times the FMR. This means that the actual rent prices are far above what the FMR suggests, creating a challenging environment for Section 8 voucher holders. The voucher program typically allows tenants to pay 30% of their income towards rent, while the government covers the remaining amount up to the FMR. Given that the median household income in 90001 is $60,767, a voucher holder would need to find a landlord willing to accept $2,070 per month, which is only 40.9% of the median income. This is a significant constraint, as many landlords may prefer higher-paying tenants who can afford the market rate. #### Affordability & Renter Profile The high rent-to-income ratio and the fact that 66.4% of the population are renters indicate that this is a tight market where affordability is a major concern. With a median household income of $60,767, the average renter in 90001 would struggle to find housing that fits within their budget, especially considering that the occupancy rate is 96.2%, suggesting very little vacancy. The majority of residents are likely to be low to middle-income families who rely heavily on affordable housing options. The high demand for rentals and the limited supply create a competitive landscape where landlords have the upper hand, leading to rents that are well above the FMR. This situation makes it difficult for voucher holders to secure housing, as they must find landlords willing to accept the lower FMR rates. #### Investor Angle From an investor perspective, the ZIP code 90001 presents a mixed picture when considering cash flow and investment grade. While the market rent is much higher than the FMR, the reality for Section 8-focused investors is that they will be limited to the FMR rates. For a two-bedroom unit, this means a maximum rent of $2,070 per month. Given the median home value and the high price-to-FMR ratio, the cost of acquisition is substantial, and the potential for cash flow positive investments at FMR rates is minimal. The high demand for rentals and the limited supply suggest that there could be opportunities for investors willing to charge market rates, but this is not aligned with the goals of Section 8-focused investors who aim to provide affordable housing. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should consider focusing on smaller units such as studios or one-bedroom apartments. The FMR for a one-bedroom unit is $1,630, which is still a significant portion of the median income ($60,767). This could make these units more attractive to voucher holders and potentially easier to lease. Additionally, smaller units generally have lower acquisition costs, which might help improve the cash flow situation. 2. **Target Low-Income Housing Projects**: Investors looking to align with the goals of providing affordable housing should look into projects that qualify for low-income housing tax credits (LIHTC). These projects often have subsidies that can help offset the lower rental income received from Section 8 vouchers. By participating in LIHTC programs, investors can ensure a steady stream of income and benefit from tax incentives, making the investment more viable. 3. **Consider Renovation Opportunities**: There may be older properties in the area that can be renovated to meet modern standards while still being priced at or near the FMR. This approach can attract voucher holders who are looking for quality living conditions. Renovations can also increase the overall value of the property, making it a better long-term investment. #### Bottom Line Given the high market rent compared to the FMR and the limited supply of rental units, the ZIP code 90001 is not recommended for Section 8-focused investors seeking immediate cash flow positive opportunities. The high price-to-FMR ratio indicates that most landlords would prefer market-rate tenants over those using vouchers. Therefore, the recommendation is to **Skip** this ZIP code for now unless you can leverage other government programs like LIHTC or focus on smaller units where the FMR is a larger percentage of the median income. In summary, the tight market and high rent-to-income ratio make it challenging for Section 8 voucher holders to find suitable housing, and thus, less attractive for investors focused on this program.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.