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 | $1,760 |
| 1 Bedroom | $1,960 |
| 2 Bedrooms | $2,420 |
| 3 Bedrooms | $3,070 |
| 4 Bedrooms | $3,440 |
| 5 Bedrooms | $3,990 |
| 6 Bedrooms | $4,469 |
| 7 Bedrooms | $4,827 |
| 8 Bedrooms | $5,068 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,960 | $783,934 | 0.25% | F |
U.S. Census Bureau data (2024)
ZIP 90021, located within the Los Angeles-Long Beach-Glendale HUD Metro FMR Area, presents a unique opportunity for inclusion in a Section 8 portfolio strategy. This area should be considered a cash-flow anchor due to the significant spread between the Fair Market Rent (FMR) and the market rent, which is expected to remain stable in FY 2024.
The FMR for ZIP 90021 in FY 2024 is set at $2590. In contrast, the current market rent stands at $2,842, indicating a $252 difference per month. This gap means that landlords can rely on steady, predictable rental income from Section 8 tenants without the risk of having to cut prices to attract market-rate renters. The lower FMR also ensures that the housing assistance payments will cover a substantial portion of the market rent, minimizing the financial burden on landlords.
The median home value in ZIP 90021 is $871,534, which is indicative of a higher-cost market. However, the median income of $32,222 suggests that many residents depend on affordable housing options. With a renter share of 91.9%, there is a high demand for rental properties, making it easier for landlords to fill units and maintain occupancy rates. This consistency in occupancy is crucial for cash flow stability.
While appreciation plays and diversifiers are important components of a well-rounded investment portfolio, ZIP 90021's characteristics make it an ideal candidate for anchoring cash flow. The combination of a strong tenant base, a high renter share, and the predictability of Section 8 rents ensures that landlords can count on reliable income streams even in volatile real estate markets.
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.