Location: Los Angeles-Long Beach-Glendale, CA | Metro: Los Angeles-Long Beach-Glendale, 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 | $2,340 |
| 1 Bedroom | $2,620 |
| 2 Bedrooms | $3,230 |
| 3 Bedrooms | $4,100 |
| 4 Bedrooms | $4,590 |
| 5 Bedrooms | $5,324 |
| 6 Bedrooms | $5,963 |
| 7 Bedrooms | $6,440 |
| 8 Bedrooms | $6,762 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $3,230 | $664,777 | 0.49% | F |
| 3BR | $4,100 | $949,174 | 0.43% | F |
| 4BR | $4,590 | $1,809,527 | 0.25% | F |
| 5BR | $5,324 | $2,622,804 | 0.2% | F |
U.S. Census Bureau data (2024)
The ZIP code 90005 in Los Angeles, CA, presents a challenging rental market for households. With a median income of $49,419, the ability to afford the market rate rent of $2,429 per month (ZORI) is questionable. To put this into perspective, the median income equates to approximately $4,118 per month, assuming it is evenly distributed throughout the year. Typically, housing costs should not exceed 30% of a household's income; however, at ZORI, the monthly rent would consume nearly 60% of the median income, which is unsustainable.
The Federal Market Rent (FMR) for ZIP 90005 in fiscal year 2024 is set at $2,670. This figure is slightly higher than the market rate but still poses significant affordability issues for the majority of residents. Given that 91.1% of the population are renters and the total population stands at 39,142, the competition among landlords is fierce as they vie for a limited pool of potential tenants who can meet these rent standards.
The disparity between income and rent highlights an affordability gap that affects both tenants and landlords. For landlords, accepting Section 8 vouchers, which are tied to the FMR, can ensure a steady stream of income. However, the margin between the FMR and the market rate is narrow, leaving little room for profit above the market average.
In conclusion, landlords in ZIP 90005 must carefully consider their strategy when it comes to voucher versus cash-paying tenants. While cash-paying tenants might offer a higher monthly rent, the reality is that few households can afford the market rate. Therefore, landlords who are willing to accept Section 8 vouchers will have a competitive edge in securing tenants, albeit at a lower rate compared to the market. The key takeaway is that landlords should be prepared to balance between the security of consistent rental income and the pursuit of higher market rates, recognizing the financial constraints of most local households.
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.