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 | $1,680 |
| 1 Bedroom | $1,880 |
| 2 Bedrooms | $2,320 |
| 3 Bedrooms | $2,940 |
| 4 Bedrooms | $3,290 |
| 5 Bedrooms | $3,816 |
| 6 Bedrooms | $4,274 |
| 7 Bedrooms | $4,616 |
| 8 Bedrooms | $4,847 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,880 | $465,272 | 0.4% | F |
| 2BR | $2,320 | $530,435 | 0.44% | F |
| 3BR | $2,940 | $592,599 | 0.5% | F |
| 4BR | $3,290 | $643,398 | 0.51% | F |
| 5BR | $3,816 | $749,911 | 0.51% | F |
U.S. Census Bureau data (2024)
Los Angeles 90011, located in South Los Angeles, is a dense, predominantly renter-heavy neighborhood characterized by a mix of industrial activity and residential bungalow courts. The area is currently undergoing significant transition, with major investments like the expansion of the Exposition Light Rail line improving transit connectivity to downtown and the Westside. A key local institution shaping the community is California State University, Dominguez Hills, which lies just to the south and provides educational and economic stability to the region.
For investors analyzing the math, the data reveals a tangible cash flow hurdle. The HUD Fair Market Rent (FMR) for a 2-bedroom unit in FY2026 is set at $2,070, while current market rents (Zillow ZORI) sit at $2,471, leaving a gap of $401 per month between the voucher ceiling and market reality. Median home values in the zip code are $600,758, with the specific median 2BR sale price at $540,406. Properties here move relatively slowly, sitting on the market for a median of 97 days. Consequently, standard voucher tenants do not cash-flow at market rates unless an investor secures a property below the median sales price to offset the rent differential.
Despite the rent gap, demand fundamentals remain robust. With a renter share of 74.4% and a median household income of $59,017, a large portion of the population is naturally priced out of higher-rent districts, driving consistent demand for subsidized housing. The neighborhood offers essential amenities, including access to the Metro E Line and major medical centers like Martin Luther King Jr. Community Hospital, which serves as a primary employer and stabilizer for the local tenant pool.
From a Section 8 investment standpoint, the strongest angle in 90011 is stability rather than immediate maximum yield. The high density of renters and presence of major anchors like the nearby university and hospital ensure a steady flow of eligible voucher holders. While the $401 negative gap requires careful acquisition pricing, the combination of long-term tenant retention and the relative affordability of entry compared to the wider Los Angeles market presents a viable, appreciation-focused strategy for patient portfolio investors.
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.