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 | $1,730 |
| 1 Bedroom | $1,930 |
| 2 Bedrooms | $2,380 |
| 3 Bedrooms | $3,020 |
| 4 Bedrooms | $3,380 |
| 5 Bedrooms | $3,921 |
| 6 Bedrooms | $4,392 |
| 7 Bedrooms | $4,743 |
| 8 Bedrooms | $4,980 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,380 | $674,860 | 0.35% | F |
| 3BR | $3,020 | $785,342 | 0.38% | F |
| 4BR | $3,380 | $915,438 | 0.37% | F |
| 5BR | $3,921 | $1,172,647 | 0.33% | F |
U.S. Census Bureau data (2024)
The ZIP code 90007 is situated in the vibrant and diverse neighborhood of Los Angeles, California. This area hosts a population of 38,715 residents, with a striking 90.2% of them being renters. The median household income here stands at $35,378, reflecting a mix of middle-class families and individuals who are likely to be seeking affordable housing options. Despite the relatively modest incomes, the median home value in 900007 is impressively high at $880,180, indicating a strong demand for property in the area.
Moving into the realm of rent economics, the Fair Market Rent (FMR) for the zip code for fiscal year 2024 is set at $2,000, which is notably lower than the actual market rent of $2,379 (ZORI). This discrepancy suggests that there is potential for landlords and investors to offer rental properties at rates slightly above the FMR while still remaining competitive in the local market.
Given these figures, ZIP 90007 could appeal to both hands-off voucher operators and hands-on value-add buyers. For those preferring a hands-off approach, the FMR provides a stable baseline for rents, ensuring steady cash flow without the need for active management. On the other hand, for investors willing to engage in value-add strategies, such as improving property conditions or offering amenities that attract higher-paying tenants, the gap between FMR and market rent presents an opportunity to enhance returns. However, it's crucial to note that the success of any investment strategy in this area will depend on a thorough understanding of the local rental market dynamics and tenant needs.
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.