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 | $2,160 |
| 1 Bedroom | $2,410 |
| 2 Bedrooms | $2,970 |
| 3 Bedrooms | $3,770 |
| 4 Bedrooms | $4,220 |
| 5 Bedrooms | $4,895 |
| 6 Bedrooms | $5,482 |
| 7 Bedrooms | $5,921 |
| 8 Bedrooms | $6,217 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,410 | $624,850 | 0.39% | F |
| 2BR | $2,970 | $875,887 | 0.34% | F |
| 3BR | $3,770 | $1,053,825 | 0.36% | F |
| 4BR | $4,220 | $1,127,879 | 0.37% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 90029, located in Los Angeles, CA, reveals a strong opportunity for positive cash flow. The HUD Fair Market Rent (FMR) for the area is set at $2410 for fiscal year 2024, which is significantly higher than the Zillow Observed Rent Index (ZORI) of $2,118. This means that voucher tenants will cashflow at FMR, providing landlords with a substantial buffer against rental income volatility.
To further analyze the investment potential, consider the median home value of $957,978. With the current market rent, the rent-to-price ratio stands at approximately 0.22%, indicating that rental properties are undervalued relative to their purchase price. This makes rental investing particularly attractive in the area, as it suggests that property values could rise over time, offering both cash flow and potential appreciation benefits.
The dynamics between renting and buying are also favorable for investors. The median days on market (DOM) is listed as N/A, suggesting a highly active market where homes are typically sold quickly. Additionally, the low price-cut share of 0.3% indicates that sellers are generally able to achieve their asking prices without significant reductions. These factors support the idea that the market is stable and likely to remain so, benefiting long-term investors.
The strongest investor angle in ZIP 90029 is cash flow, given the disparity between the HUD FMR and the ZORI, coupled with the undervaluation of rental properties based on the rent-to-price ratio. While appreciation is possible, the immediate financial benefit of positive cash flow is the most compelling reason for Section 8 investors to focus on this area.
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.