Section 8 Fair Market Rent (FMR) for ZIP 90024 - 2027

Investment Score for ZIP 90024

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	$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

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	$3,610	$574,540	0.63%	D
2BR	$4,450	$1,018,077	0.44%	F
3BR	$5,650	$2,299,566	0.25%	F
4BR	$6,320	$3,677,964	0.17%	F
5BR	$7,331	$5,099,248	0.14%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 90024 (Los Angeles, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 90024 in 2026 is set at $3850 for a two-bedroom apartment. This represents 60.3% of the median household income of $76,583, indicating that it is relatively affordable for those earning close to the median income. However, the actual rent for a two-bedroom unit listed on Zillow is $1,059,590, which is significantly higher than the FMR. The price-to-FMR ratio is 22.9x, meaning that the actual market rent is nearly 23 times the FMR. This stark difference highlights a significant constraint for voucher holders, as landlords may be reluctant to accept vouchers due to the substantial gap between the FMR and the market rent. Additionally, voucher holders might struggle to find units that are willing to accept their vouchers, given the high market rent compared to the FMR. #### Affordability & Renter Profile ZIP code 90024 has a population of 51,675, with 67.5% of residents being renters. This indicates a strong rental market, where a majority of the population relies on renting rather than owning property. The occupancy rate of 82.6% suggests that the market is fairly tight, with most available units being occupied. Given the high median household income of $76,583, the area attracts a diverse range of renters, including professionals, families, and students. However, the high market rent makes it challenging for lower-income individuals to afford housing, even with Section 8 vouchers. The affordability gap is particularly pronounced for two-bedroom units, which are crucial for families but are priced well above the FMR. #### Investor Angle From an investor perspective, the ZIP code 90024 presents a mixed picture. While the FMR provides a baseline for what voucher holders can afford, the actual market rent is much higher. For instance, a two-bedroom apartment's FMR is $3850, while the market rent is $1,059,590. This means that if an investor were to purchase a property based on the FMR, they would likely face negative cash flow, as the rental income would not cover the mortgage payments and other expenses associated with owning a property valued at over a million dollars. The investment grade for properties in this ZIP code would be low for Section 8-focused investors, given the mismatch between the FMR and the actual market rent. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high market rent for larger units, investors should consider focusing on smaller units such as one-bedroom apartments. The FMR for a one-bedroom unit is $3090, which is still a fraction of the market rent. Landlords who accept Section 8 vouchers for these units might have a better chance of finding tenants, as the demand for smaller units is typically higher among lower-income households. 2. **Consider Alternative Financing Options**: Due to the high market value of properties in ZIP code 90024, traditional financing might not be sufficient to generate positive cash flow when renting at FMR rates. Investors could explore alternative financing options, such as hard money loans or private lending, to reduce the overall cost of acquisition and improve cash flow potential. 3. **Evaluate Long-Term Appreciation Potential**: Despite the challenges of cash flow, the ZIP code 90024 offers significant long-term appreciation potential. Properties in this area are likely to increase in value over time, driven by the strong rental market and high demand for housing. Investors should weigh the potential for capital gains against the short-term cash flow challenges. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 90024 is to **Skip**. The high market rent relative to the FMR creates significant barriers for both voucher holders and investors. Accepting Section 8 vouchers would result in negative cash flow for most properties, making it difficult to justify the investment. Instead, investors should look for areas with a closer alignment between FMR and market rent, where they can achieve positive cash flow and still benefit from the strong rental market dynamics. --- This analysis is based solely on the provided data and does not include any external sources or assumptions beyond the given figures.

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.