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 | $3,230 |
| 1 Bedroom | $3,610 |
| 2 Bedrooms | $4,450 |
| 3 Bedrooms | $5,650 |
| 4 Bedrooms | $6,320 |
| 5 Bedrooms | $7,331 |
| 6 Bedrooms | $8,211 |
| 7 Bedrooms | $8,868 |
| 8 Bedrooms | $9,311 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $3,610 | $523,751 | 0.69% | D |
| 2BR | $4,450 | $814,992 | 0.55% | F |
| 3BR | $5,650 | $1,111,750 | 0.51% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP 90015, located in Los Angeles, CA, does not align favorably for landlords. The Fair Market Rent (FMR) set at $3820 for the fiscal year 2024 is significantly higher than the actual market rent, which stands at $2,643 according to ZORI. This discrepancy suggests that landlords might struggle to achieve rents at the level suggested by HUD, leading to potential financial losses.
Acquisition in this area is moderately affordable, with a median home value of $616,024. However, the lack of data on days on market (DOM) and the low percentage of homes that have been listed with a price cut (0.2%) indicate that the housing market may be tight, making it challenging to find good deals on properties. Landlords should expect to compete with other buyers for available homes.
Tenant demand is robust in ZIP 90015. With a total population of 24,704 and a renter share of 88.6%, there is a strong pool of potential tenants. This high demand for rental properties supports the likelihood of finding tenants quickly, although landlords will need to ensure their properties are priced competitively to attract renters.
In conclusion, while the tenant demand in ZIP 90015 is high, the rent math does not currently support profitable operations based on HUD's FMR. Landlords must carefully consider market conditions and price their rentals accordingly to avoid financial strain. Acquisition costs are reasonable but the market is likely competitive, necessitating strategic property selection and management practices to succeed in this area.
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.