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 | $1,920 |
| 1 Bedroom | $2,140 |
| 2 Bedrooms | $2,640 |
| 3 Bedrooms | $3,350 |
| 4 Bedrooms | $3,750 |
| 5 Bedrooms | $4,350 |
| 6 Bedrooms | $4,872 |
| 7 Bedrooms | $5,262 |
| 8 Bedrooms | $5,525 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,140 | $431,900 | 0.5% | F |
| 2BR | $2,640 | $855,593 | 0.31% | F |
| 3BR | $3,350 | $1,120,321 | 0.3% | F |
| 4BR | $3,750 | $1,422,150 | 0.26% | F |
| 5BR | $4,350 | $1,737,209 | 0.25% | F |
U.S. Census Bureau data (2024)
The ZIP code 90008 is located in the heart of downtown Los Angeles, CA, representing a densely populated urban area with a total population of 33,252 residents. A significant portion of these residents, 69.4%, are renters, indicating a high demand for rental properties in the area. The median household income in this neighborhood stands at $61,846, which reflects a diverse socioeconomic mix typical of urban centers. Despite the relatively moderate median income, the median home value in 90008 is exceptionally high at $1,087,506, underscoring the premium placed on property in this central location.
Moving into the specifics of rental economics, the Fair Market Rent (FMR) for ZIP code 90008 in fiscal year 2024 is set at $2,080. This figure is closely aligned with the market rent, as indicated by the Zillow Observed Rent Index (ZORI), which currently stands at $2,133. This near parity between FMR and market rent suggests that landlords operating under Section 8 vouchers can expect to receive rents that are competitive with the local market rates, thus maintaining a stable cash flow without significant revenue loss.
Given the characteristics of ZIP 90008, it presents an opportunity that could suit both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the robust demand for rentals and the proximity of FMR to market rent make it a reliable investment with steady returns. Meanwhile, for hands-on investors looking to add value, the high median home value provides a strong foundation for potential appreciation. Improvements to rental properties in this area could leverage the premium location and potentially command higher rents once the improvements are made, thereby enhancing profitability over time.
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.