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 | $2,770 |
| 1 Bedroom | $3,100 |
| 2 Bedrooms | $3,820 |
| 3 Bedrooms | $4,850 |
| 4 Bedrooms | $5,420 |
| 5 Bedrooms | $6,287 |
| 6 Bedrooms | $7,041 |
| 7 Bedrooms | $7,604 |
| 8 Bedrooms | $7,984 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $3,100 | $474,079 | 0.65% | D |
U.S. Census Bureau data (2024)
The ZIP code 90014 presents a dynamic rental market with the Fair Market Rent (FMR) set at $3620 for fiscal year 2024, indicating a high threshold for affordable housing subsidies. The Zillow Observed Rent Index (ZORI) stands at $2,624, suggesting that actual market rents are below the subsidy threshold, possibly due to competitive pricing strategies among landlords. This inference is supported by the low price-cut share of 0.1%, which implies that landlords are not heavily discounting their rents to attract tenants, a behavior typically seen when supply outpaces demand.
The median home value in 90014 is $539,318. Given the high FMR and median home values, it's reasonable to conclude that the area experiences significant long-term housing pressure. With a 94.0% renter share, it's evident that the majority of residents are renters rather than homeowners, which can be attributed to the high cost of living and potentially limited job opportunities that support homeownership. This high renter share also suggests a robust demand for rental properties, as many individuals and families find owning a home financially unfeasible.
The dynamics of 90014's real estate market indicate a scenario where demand likely exceeds supply, especially for affordable rentals. Landlords and small-portfolio investors should consider the high FMR as an opportunity to offer subsidized units to tenants qualifying for assistance, thereby ensuring steady occupancy rates. Additionally, the high median home value and renter share point towards a market where rental properties could serve as a critical asset class, providing stable returns without the necessity of frequent price adjustments.
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.