Section 8 Fair Market Rent (FMR) for ZIP 90019 - 2027

Investment Score for ZIP 90019

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$2,140
1 Bedroom	$2,390
2 Bedrooms	$2,950
3 Bedrooms	$3,740
4 Bedrooms	$4,190
5 Bedrooms	$4,860
6 Bedrooms	$5,443
7 Bedrooms	$5,878
8 Bedrooms	$6,172

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$2,390	$677,885	0.35%	F
2BR	$2,950	$944,071	0.31%	F
3BR	$3,740	$1,249,110	0.3%	F
4BR	$4,190	$1,406,661	0.3%	F
5BR	$4,860	$1,649,028	0.29%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 90019 (Los Angeles, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 90019 in Los Angeles, CA, for 2026 indicate that a two-bedroom unit is priced at $2,580. This represents 41.9% of the median household income of $73,934 in the area. However, the actual rental market is significantly higher, with Zillow reporting a median price for a two-bedroom unit at $964,919. The price-to-FMR ratio of 31.2x suggests that the actual market rents far exceed the FMR set by HUD. For voucher holders, this means that finding affordable housing within the FMR limits is extremely challenging, as most units would be well above their budget. #### Affordability & Renter Profile ZIP code 90019 has a high renter population of 76.2%, indicating a strong demand for rental properties. With a median household income of $73,934, many residents rely on rental assistance programs like Section 8 to afford living in this area. The occupancy rate of 91.1% suggests that the market is relatively tight, with few vacant units available. Given the high renter percentage and the limited availability of affordable units, it is likely that renters are predominantly young professionals, students, and families who require financial assistance to live in this neighborhood. #### Investor Angle For investors focusing on Section 8 properties, the ZIP code 90019 presents a mixed picture. While the demand for rental properties is high, the actual market rents are substantially higher than the FMRs. An investor looking to purchase a property and rent it out at the FMR would face significant challenges in achieving positive cash flow. For instance, a two-bedroom unit rented at $2,580 per month would need to cover all expenses, including mortgage payments, maintenance, and property taxes, which are likely to be much higher given the median home value of $964,919. To determine if the ZIP is cash-flow positive at FMR, we can use a simplified model. Assuming a typical mortgage payment of around 1% of the property value per month, the monthly mortgage payment for a $964,919 property would be approximately $9,649. Even without considering other costs such as property taxes, insurance, and maintenance, it is clear that renting at the FMR of $2,580 would result in a negative cash flow of over $7,000 per month. Therefore, the investment grade for Section 8-focused properties in this ZIP is low due to the significant gap between FMR and market rents. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high cost of larger units, investors might consider focusing on smaller units, such as one-bedroom apartments, which have an FMR of $2,070. Although still challenging, the gap between FMR and market rents is slightly less pronounced for smaller units, potentially making them more viable options for positive cash flow. 2. **Seek Out-of-Market Properties**: Investors should explore properties outside the immediate ZIP code but within a reasonable commuting distance to 90019. Areas with lower median home values and closer FMRs to market rents could provide better opportunities for positive cash flow while still catering to the needs of voucher holders who work or attend school in 90019. 3. **Utilize Government Programs**: Investors should look into government programs that offer additional subsidies or incentives for landlords who accept Section 8 vouchers. These programs can help bridge the gap between FMR and market rents, making the investment more feasible. #### Bottom Line Given the significant disparity between the FMR and the actual market rents, along with the high occupancy rates and limited availability of affordable units, the recommendation for Section 8-focused investors in ZIP code 90019 is to **skip** this market. The likelihood of achieving positive cash flow is very low, and the overall investment grade is poor. Instead, investors should consider areas with more favorable FMR-to-market rent ratios and lower median home values to ensure a more sustainable investment strategy.

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.