Section 8 Fair Market Rent (FMR) for ZIP 90027 - 2027

Investment Score for ZIP 90027

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	$2,610
1 Bedroom	$2,920
2 Bedrooms	$3,600
3 Bedrooms	$4,570
4 Bedrooms	$5,110
5 Bedrooms	$5,928
6 Bedrooms	$6,639
7 Bedrooms	$7,170
8 Bedrooms	$7,529

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$2,920	$637,871	0.46%	F
2BR	$3,600	$1,139,644	0.32%	F
3BR	$4,570	$1,920,910	0.24%	F
4BR	$5,110	$2,778,575	0.18%	F
5BR	$5,928	$3,628,440	0.16%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 90027 (Los Angeles, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 90027 is set by HUD for 2026, with the following figures: - 0BR: $2210 - 1BR: $2470 - 2BR: $3080 - 3BR: $3900 - 4BR: $4350 To understand how these FMRs compare to actual rents, we need to consider the Zillow median price for a 2BR unit, which is $1,131,175. The price-to-FMR ratio for a 2BR unit is 30.6x, indicating that the median home value is significantly higher than the FMR. This suggests that actual rents in the area are likely much higher than the FMRs set by HUD. For voucher holders, the constraints are significant. The FMRs are substantially lower than what would be considered typical rental rates in this ZIP code. For example, a voucher holder with a 2BR unit would pay $3080 per month, but the actual rent could be much higher. This creates a challenge for voucher holders to find units that accept their vouchers and are within the FMR limits. #### Affordability & Renter Profile ZIP code 90027 has a population of 46,558, with 80.0% of residents being renters. This indicates a strong rental market with high demand. The occupancy rate of 90.7% further supports the notion that there is little vacancy, making it a tight market. Given the median household income of $94,521, the affordability of housing becomes a critical issue. The FMR for a 2BR unit is $3080, which represents 39.1% of the median income. However, the actual median home value of $1,131,175 is far beyond the reach of most residents, especially those relying on Section 8 vouchers. This implies that the majority of renters in this ZIP code are likely to be low-income individuals who struggle to find affordable housing. #### Investor Angle From an investor perspective, the ZIP code 90027 presents a mixed picture. While the tight rental market suggests strong demand, the high median home values and price-to-FMR ratios indicate that rents are likely to be much higher than the FMRs. This means that properties rented at FMR levels will not generate sufficient cash flow to cover expenses such as mortgage payments, property taxes, insurance, and maintenance. The investment grade for this ZIP code is likely to be low due to the difficulty in finding units that can be rented at FMR levels while still generating positive cash flow. Investors should carefully consider the potential for negative cash flow and the challenges of attracting tenants who can afford the higher rents required to make ends meet. #### Specific Actionable Insights 1. **Focus on Units Below FMR**: Given the high price-to-FMR ratio, investors might consider purchasing units that are below the FMR levels. For instance, a 2BR unit priced at $3080 or less would be more attractive to voucher holders and potentially easier to rent out. However, this strategy requires identifying undervalued properties, which can be challenging in a tight market. 2. **Consider Multi-Family Properties**: Single-family homes in this ZIP code are likely to be priced well above the FMR. Investors might find better opportunities in multi-family properties where they can offer multiple units at varying sizes and prices. A 2BR unit might be priced at $3080, while larger units could command higher rents, balancing the overall cash flow. 3. **Explore Government Programs**: Given the high cost of living and the significant portion of the population that relies on rental assistance, investors might explore government programs designed to subsidize housing costs. These programs can help bridge the gap between FMR and actual rental rates, making properties more attractive to voucher holders and improving the chances of positive cash flow. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 90027 is to **skip** this market. The high price-to-FMR ratio and the tight rental market make it difficult to achieve positive cash flow when renting at FMR levels. Additionally, the high median home value suggests that rents are likely to be much higher than the FMRs, creating a mismatch between the needs of voucher holders and the availability of affordable units. Investors should look for markets with lower price-to-FMR ratios and more favorable conditions for positive cash flow.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.